Auditor general says Canada abandoned thermal coal export ban work in secret

OTTAWA · A federal audit has found that Environment and Climate Change Canada secretly stopped all work on a promised ban on thermal coal exports. The auditor general's report, released Thursday, said the department produced no evidence of an official order to halt the work, which ceased in November 2024 following lobbying from the coal industry. Officials did not notify the public or formally assess the implications of stopping the work, which was only officially ended in August 2025 as a cost saving measure. The audit notes Canada is co-chair of an international alliance to transition away from coal, a commitment it made in 2021 to ban such exports by 2030.

Auditor General Karen Hogan and her deputy, Andrew Hayes, told reporters the move was unprecedented in their experience. "I don't remember a time in the last 20 years where I've seen work stop like that," Hayes said. The report states that between October 2021 and February 2024, the department explored using existing laws, including regulating coal as a toxic substance, to enforce the future ban. After that, efforts shifted to non-regulatory approaches like voluntary measures before stopping entirely.

The report criticized the lack of transparency, stating exports in 2025 were higher than in 2021. "The lack of public information and updates on the government's current approach is concerning," the audit said. "Transparency in decision making provides certainty and enables interested parties, such as provincial and territorial governments, coal mining companies, transportation authorities, shipping terminals and the labour force to contribute to a just transition." Environment Minister Julie Dabrusin, who was unavailable for questions, issued a statement saying Canada was "pausing" its work. Her parliamentary secretary, Liberal MP Wade Grant, responded to media inquiries. When asked if the 2030 ban commitment still stands, Grant said it is "something (the government) will look at."

The audit also revealed that 61 per cent of thermal coal shipped from Canadian ports in 2025 originated in the United States. Coal from mines in Washington, Oregon and California is railed to B.C. ports because U.S. regulations hinder building Pacific coast export infrastructure. Former B.C. premier David Eby, who in August urged faster federal action unaware the work had stopped, suggested this trade could be used as leverage in negotiations. Global Affairs was involved only at Environment Canada's request, providing analysis on trade risks related to a potential ban. The international program finances projects to retire coal plants, scale up clean energy and support affected workers, with activities expected until 2047.

With files from The Canadian Press, CBC News and The Globe and Mail