The legislation, expected to be in place by early 2011, but not in effect until 2015, will force electricity producers to phase out older, high-emitting coal-fired plants, change technology in existing plants, and require newer facilities to match the lower greenhouse-gas emissions of more efficient natural-gas fired plants.

Canada has 51 coal-fired units producing 19 percent of the country's electricity and 13 percent of its greenhouse gas emissions. However, 33 coal plants will reach the end of their economic lives by 2025, which may leave existing coal plants operating another 15 years. Unless operators make substantial investments to cut emissions from the aging facilities, the plant will be required to shut down.

"Our regulation will be very clear," states Prentice. "When each coal-burning unit reaches the end of its economic life, it will have to meet the new standards or close down. No trading, no offsets, no credits." This may leave existing coal plants operating for another 15 years, in business as usual mode.

"We're looking at this positively," states Marlo Raynolds, executive director of the Pembina Institute. "For once the minister is heading in the right direction but the details of the regulations must actually result in a true and timely phase out (of coal power) in Canada."

Climate Action Network Canada voiced concern about the pattern of announcements for future regulations to address climate change and emissions, which then do not then materialize.