Environment Minister Peter Kent said the standards would come into effect in 2015 and would require new coal-fired power plants to install CCS technology to make their emissions comparable to those of natural gas-fired power plants. The rules also contain exemptions for CCS demonstration plants and emergency facilities and would effectively ban the construction of new plants without CCS.
"We are taking action in the electricity sector because we recognize the potential for significant emissions reductions," Kent said in a statement.
The government said it expects the rules to spur investment in natural gas and renewable energy technologies as well as the use of CCS.
The draft rules will be published in late August before a 60-day public comment period.
The government said it estimates that 33 of the country’s 51 coal-fired power plants will be shut down by 2025. The government also said the rules would help cut greenhouse gas emissions by 31 megatons by 2020.
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