The Alberta government says it is committed to phasing out coal-fired power generation by 2030 and reducing methane emissions by 45 percent by 2025.

The plan, released in Edmonton on Sunday, was created under the guidance of the Climate Change Advisory Panel and will see Alberta’s reliance on coal diminished and eventually phased out.

“Alberta is going to stop being the problem and instead we will be the solution,” said Premier Rachel Notley during the announcement,

Environment Minister Shannon Phillips and Health Minister Sarah Hoffman are supporting the province's plan, saying that the emissions from pollution created directly by burning coal is having a negative impact on the health of Albertans.

They are pledging to make a change to alternative sources of energy, where two-thirds of the province's power would eventually be provided by renewable energy sources such as wind power and natural gas.

Highlights of the plan include:

  • Reducing greenhouse gas pollution by installing carbon pricing of $20/tonne in January 2017 and $30/tonne beginning January 2018
  • Reinvesting proceeds of carbon pricing in clean energy research, green infrastructure and residential energy reduction programs
  • Instituting an oil sands emission limit of 100 megatonnes (includes provision for upgrades and co-generation)
  • Implementing a methane reduction strategy to reduce emissions by 45% by 2025 (compared to 2014’s emission levels)

The NDP government says the revenue generated from the carbon tax will be invested directly back into the measures in place for reducing greenhouse gases, including clean research, technology, and green infrstructure like public transit.

The tax will cost the average Alberta family an extra $320 in 2017 and $470 in 2018.

Notley says that the government will be putting methods in place to help lower income families make ends meet.

Health officials are also behind the NDP's plan, saying that the Alberta Medical Association has already passed a motion to work on phasing out coal power in the province as soon as possible.

“There is a direct link between the burning of coal and asthma exacerbations, hospital admissions, and untimely deaths, not to mention climate change. The Alberta government has responded to protect the health of all Albertans, particularly those who suffer from respiratory disease, such as asthma. We are extremely pleased with the unwavering commitment the province has made today to ensure the air we breathe is clean,” said Noah Farber, acting president and CEO, Asthma Society of Canada.

However, the Opposition says the NDP plan is a bad idea and that it will cost Alberta too much.

Brian Jean, Leader of the Wildrose Party, says he is concerned that the NDP's new carbon tax will hit vulnerable families too hard, especially at a time of economic uncertainty.

Jean made the remarks on Monday morning in Edmonton, saying that new tax comes as a complete surprise to Albertans because the NDP made no mention of it during their campaign.

"In homes and communities across Alberta, this NDP policy will have a serious negative impact. There is no more clarity on those losing work will be, and I quote, treated fairly, end quote," he said on Monday.

Jean also said it's unclear who will be responsible for the costs of shutting down the province's coal generation projects.

He says that the new carbon tax will saddle residents with $3B in costs, adding to the $1.5B added in new taxes and fees already added so far under the NDP government.

"Without any serious market-based leadership on providing cost effective alternatives, this move will just be another line item added to the escalating costs of the NDP's risk taking agenda."

Jean says he is convinced the new plan will hurt the economy and make it much more expensive for industry to do business in Alberta.

He also says that the plan won't actually reduce carbon emissions at all. "In 2013, Alberta emitted 267 megatons of greenhouse gases, Under this plan, in 2030, after 15 years of this plan and $45B, the goverment has projected the province will have emitted 270 megatons."