Coal phase-out

Coal phase-out is an environmental policy intended to stop burning coal in coal-fired power plants and elsewhere, and is part of fossil fuel phase-out. The health and environmental benefits of coal phase-out, such as limiting respiratory diseases and biodiversity loss, are greater than the cost. Coal is the most carbon-intensive fossil fuel, therefore phasing it out is critical to limiting climate change as laid out in the Paris Agreement. The International Energy Agency (IEA) estimates that coal is responsible for over 30% of the global average temperature increase above pre-industrial levels. Some countries in the Powering Past Coal Alliance have already stopped.

China and India burn a lot of coal. But the only significant funding for new plants is for coal power in China. Developed countries may part finance the phase out for developing countries through the Just Energy Transition Partnership, provided they do not build any more coal plants. It has been estimated that coal phase-out could benefit society by over 1% of GDP each year to the end of the 21st century, so economists have suggested a Coasean bargain in which already developed countries help finance the coal phase-out of still developing countries.

The health and environmental benefits of getting rid of coal quickly exceed the costs, but some countries still favor coal, and there is much disagreement about how quickly it should be phased out. However many countries, such as the Powering Past Coal Alliance, have already or are transitioned away from coal; the largest transition announced so far being Germany, which is due to shut down its last coal-fired power station between 2035 and 2038. Germany is using reverse auctions to compensate coal-fired power plants for shutting down ahead of schedule. Some countries are making a just transition and pensioning off coal miners early. However, low-lying Pacific Islands are concerned the transition is not fast enough and that they will be inundated by sea level rise, so they have called for OECD countries to completely phase out coal by 2030 and other countries by 2040. Phasing down coal was agreed at the 2021 United Nations Climate Change Conference in the Glasgow Climate Pact. Vietnam is among few coal-dependent developing countries that pledged to phase out unabated coal power by the 2040s or as early as possible thereafter

In 2022–2023 coal use rose. The IEA pointed out high gas prices due to the Russian invasion of Ukraine and extreme weather events as contributors to the increase. The G7 countries have agreed to close all coal power plants by 2030–2035 unless their greenhouse gases are captured.

Peak coal

Switch to cleaner fuels and lower carbon electricity generation

Coal-fired generation puts out about twice as much carbon dioxide—around a tonne for every megawatt hour generated—as electricity generated by burning natural gas at 500 kg of greenhouse gas per megawatt hour. In addition to generating electricity, natural gas is also popular in some countries for heating. One major intergovernmental organisation (the G7) committed in 2021 to end support for coal-fired power stations within the year.

The use of coal in the United Kingdom declined as a result of the development of North Sea oil and the subsequent Dash for Gas during the 1990s. In Canada some coal power plants, such as the Hearn Generating Station, switched from coal to natural gas. In 2022, coal power in the United States provided less than a fifth of its electricity, down from almost half in 2008, due to the plentiful supplies of low cost natural gas obtained by hydraulic fracturing of tight shale formations.

Coal phase-out by country

In order to meet global climate goals and provide power to those that do not currently have it coal power must be reduced from nearly 10,000 TWh to less than 2,000 TWh by 2040.

Africa

South Africa

The country is attempting a just transition away from coal in South Africa. Three coal power plants are due to be decommissioned in 2030. Academics said in 2024 that workers in the south-west part of Mpumalanga need new jobs.

Americas

Canada

In 2014, Ontario was the first jurisdiction in North America to eliminate coal in electricity generation. In 2016, the Government of Canada announced plans to phase out coal-fired electricity generation by 2030. Alberta followed up in 2024 with phasing out its last coal power plant in Genesee. , only three provinces burned coal to generate electricity: Nova Scotia, New Brunswick, and Saskatchewan, Canada aims to generate 90% of its electricity from non-emitting sources by 2030.

United States

Asia

China

As of 2020, over half of the world's coal-generated electricity was produced in China. In 2020 alone, China added 38 gigawatts of coal-fired power generation, over three times what the rest of the world built that year.

China is confident of achieving a rich zero carbon economy by 2050. In 2021, the government ordered all coal mines to operate at full capacity at all times, including holidays; approved new mines, and eliminated restrictions on coal imports. In November 2021, China reached record coal production levels, breaking the previous historic record, established in October 2021.

China's exceedingly high energy demand pushed the demand for relatively cheap coal-fired power. Serious air quality deterioration resulted from the massive use of coal and many Chinese cities suffered severe smog events.

As a consequence, the region of Beijing decided to phase out all its coal-fired power generation by the end of 2015, a plan which it implemented with the closure of the Huaneng Beijing Thermal Power Plant in 2017. Despite this, however, the city imports most of its electricity from other coal-burning areas of the country, and the Huaneng plant has been temporarily reopened several times.

In 2024 the International Energy Agency said: “Reforms should accompany coal plants in their transition from energy suppliers to providers of flexibility services. While coal plants will continue to play a key role in providing grid stability and flexibility, their contribution in terms of electricity generation will have to decline. This shift requires targeted policies that support coal plants in becoming providers of system services, such as frequency regulation and ramping support, and seasonal flexibility, to ensure a smooth transition towards a more flexible and low-carbon power system.”

India

India is the third largest consumer of coal in the world. India's federal energy minister is planning to stop importing thermal coal by 2018.
The annual report of India's Power Ministry has a plan to grow power by about 80 GW as part of their 11th 5-year plan, and 79% of that growth will be in fossil fuel–fired power plants, primarily coal. India plans four new "ultra mega" coal-fired power plants as part of that growth, each 4000 MW in capacity. , there are six nuclear reactors under construction. In the first half of 2016, the amount of coal-fired generating capacity in pre-construction planning in India fell by 40,000 MW, according to results released by the Global Coal Plant Tracker. In June 2016, India's Ministry of Power stated that no further power plants would be required in the next three years, and "any thermal power plant that has yet to begin construction should back off."

In cement production, carbon neutral biomass is being used to replace coal for reducing carbon foot print drastically.

In 2025 the International Energy Agency said that “it is essential to consider the external costs associated with different fuel types, such as health impacts from air pollution and carbon emissions. Coal-based power generation contributes significantly to air pollution, leading to respiratory and cardiovascular diseases, and emits large amounts of CO2. By incorporating these externalities into fuel prices (e.g., through a robust carbon price signal), the true cost of coal power becomes apparent. This adjustment could make natural gas more competitive in the merit order, as it produces fewer pollutants and lower carbon emissions compared to coal. Reflecting these external costs in fuel pricing would not only promote cleaner energy sources but also improve public health and support climate goals.”

Indonesia

Japan

Japan, the world's third-largest economy, made a major move to use more fossil fuels in 2012, when the nation shut down nuclear reactors following the Fukushima accident. Nuclear, which had supplied 30 percent of Japanese electricity from 1987 to 2011, supplied only 2 percent in 2012 (hydropower supplied 8 percent). Nuclear electricity was replaced with electricity from petroleum, coal, and liquified natural gas. As a result, electricity generation from fossil fuels rose to 90 percent in 2012. By 2021, Japan generated 30% of its electricity from coal.

In January 2017, the Japanese government announced plans to build 45 new coal-fired power plants in the next ten years, largely to replace expensive electricity from petroleum power plants. Japan has 140 coal plants of which 114 are classified as inefficient and as a result the government intends to shut these down by 2050 to meet its climate commitments.

Philippines

The Philippines has stop issuing permits for the construction of new greenfield coal power plants in 2020. Six provinces have passed ordinance banning coal power plants in their jurisdiction as of 2019 namely: Bohol, Guimaras, Ilocos Norte, Masbate, Negros Oriental, Occidental Mindoro, and Sorsogon

The Department of Energy in December 2023 has urged for the voluntary early and orderly decommissioning or repurposing of existing coal-fired power plants in line of the Philippines' goal to have a 50 percent renewable energy share by 2040.

South Korea

In 2024 think tank Ember said “South Korea’s coal generation in 2023 was only 21% below its 2017 peak. It is one of the few OECD countries that has seen a large rise in electricity demand, which has doubled since 2000. The rise in clean power was not enough to meet this demand growth. As of 2023, coal generation was almost twice as high as in 2000, even though it has fallen from its peak.

Turkey

Vietnam

At the COP 26 in 2021, Vietnam pledged to phase out unabated coal power by the 2040s or soon thereafter. This is part of the country's announcement to achieve net zero emissions by 2050. In December 2022, Vietnam joined the Just Energy Transition Partnership. Under this partnership, the country will receive $15.5 billion in the next 3–5 years to accelerate decarbonising its electricity sector, including shifting coal power use peak by 2030 instead of 2035. With coal contributing to about 50% of the electricity generation, Vietnam is facing numerous challenges to phase out coal while electricity demand is increasing around 10%/year. It could, however, ramp up the penetration of solar and wind power, particularly offshore wind, to replace coal power

Europe

Finland

In 2019, Finland enacted a ban of coal use for energy purposes starting on 1 May 2029, ahead of the 2030 schedule discussed earlier. As of 2020, coal represented only 4.4% of electricity generated in the country. Finland is a founding member of the Powering Past Coal Alliance along 18 other countries.

France

The French government intends to close or convert the nation's last four coal plants by 2022. In April 2021 the Le Havre coal plant unit was shuttered.

In December 2017, to fight against global warming, France adopted a law banning new fossil fuel exploitation projects and closing current ones by 2040 in all of its territories. France thus became the first country to programme the end of fossil fuel exploitation.

Germany

is in progress. Phase-out of burning coal in Germany in power plants is scheduled for 2038, but market forces may mean that some coal plants will close earlier.

Italy

As of 2020, Italy still has nine coal power plants, for a total capacity of 7702 MW. Enel, Italy's largest power generator, intends to shut down three power plants in early 2021.

Poland

In 2024 over half of electricity in Poland was generated by coal. Katowice has joined the Powering Past Coal Alliance.

Spain

In October 2018, the First government of Pedro Sánchez and Spanish trade unions settled an agreement to close ten Spanish coal mines at the end of 2018. The government pre-engaged to spend 250 million Euro to pay for early retirements, occupational retraining and structural changes. In 2018, about 2.3 percent of the electric energy produced in Spain was produced in coal-fired power stations.

Sweden

In 2019 coal was still used to a limited extent to fuel three co-generation plants in Sweden that produced electricity and district heating. The operators of these plants planned to phase out coal by 2020, 2022 and 2025 respectively. In August 2019 one of the three remaining coal burning power producers announced that they had phased out coal prematurely in 2019 instead of 2020. Värtaverket was scheduled to close in 2022, but closed in 2020. This was the last coal plant in Sweden, and its closure made Sweden coal free.

In addition to heat and power coal is also used for steel production, there are long-term plans to phase out coal from steel production: Sweden is constructing hydrogen-based pilot steel plant to replace coke and coal usage in steel production. Once this technology is commercialized with the hydrogen generated from renewable energy sources (biogas or electricity), the carbon foot print of steel production would reduce drastically.

United Kingdom

Having been an initiator of the Industrial Revolution, the last coal power station in the United Kingdom ( Ratcliffe-on-Soar Power Station in England) stopped operating on 30 September 2024. Scotland's last coal power station closed in 2016, Wales' last coal power station closed in December 2019 and Northern Ireland's last coal power station closed in September 2023.

Coal power dominated the UK's electricity mix for decades but began to decline after the Dash for Gas in the 1990s, with significant competition from new combined cycle gas turbines. The trend continued after subsequent environmental laws brought in during the early 21st century to improve air quality, reduce greenhouse gas emissions and incentivise the rollout of renewable energy. In generating capability there was initially the closure of the Hinton Heavies, followed by the closure or conversion to biomass of the remaining coal plants by 2024. In the final few years of coal power in the UK, in 2018 it was less than at any time since the Industrial Revolution. The first "coal free day" took place in 2017. Coal supplied 5.4% of UK electricity in 2018, down from 30% in 2014, and 70% in 1990. Gas-fired power stations continue to provide some firm service.

Oceania

Australia

New Zealand

In October 2007, the Clark Labour government introduced a 10year moratorium on new fossil fuel thermal power generation. The ban was limited to state-owned utilities, although an extension to the private sector was considered. The new government under MP John Key ( NZNP) elected in the 2008 New Zealand general election, repealed this legislation.

In 2014, almost 80 percent of the electricity produced in New Zealand was from sustainable energy.
On 6 August 2015, Genesis Energy Limited announced that it would close its two last coal-fired power stations.

See also

* Beyond Coal a campaign by the Sierra Club to promote renewable energy instead of coal
* Big Coal
* Burning the Future: Coal in America
* '' The Coal Question''
* Powering Past Coal Alliance

References

Sources

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{{DEFAULTSORT:Fossil Fuel Phase Out

Emissions reduction
Energy policy
Technological phase-outs