As part of discussions around GHG emissions reductions from coal-fired generation units, owners of these units have argued that they would need compensation for lost operating opportunity. Under the schedule for phase-out proposed by the Pembina Institute, investors have an opportunity to recoup invested capital and compensation is neither required nor warranted.
Countries, utilities and financial institutions are seeking to phase out coal as part of a commitment to a net-zero economy by 2050, which in developed countries requires a net-zero electricity grid by 2035. This report shows the policies used in Ontario and Alberta can inform the coal phase-out in the Canadian provinces still burning coal, and warns that replacing coal with unabated natural gas could undermine emissions reductions and thwart efforts toward net-zero power by 2035.
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