The government said it would unveil the new law to restrict the future licensing of new coal mines "as soon as possible", describing it as a "crucial step" to tackling climate change.
Environmental groups hailed the decision, which comes after Britain's last coal-fired power station Ratcliffe-on-Soar closed in October, making the UK the first G7 country to end its reliance on the fossil fuel for electricity.
In a landmark ruling in September, British courts overturned a permit given by the previous Conservative government to a project in Whitehaven, Cumbria, which had been set to become the country's first new coal mine for 30 years.
It would have mined metallurgical coal used solely for steelmaking.
Energy minister Michael Shanks said in a statement that "consigning coal power to the past" would "pave the way for a clean, secure energy system that will protect billpayers and create a new generation of skilled workers".
- 'Great news' -
Friends of the Earth climate campaigner Tony Bosworth described Thursday's decision as "great news", adding in a statement that it "should finally consign coal to the history books".
Coal has gone from generating around 40 percent of the UK's electricity supply in 2012 to zero percent today, according to the country's government.
Researchers on Wednesday said planet-warming carbon dioxide emissions from oil, gas and coal rose to a new record high this year.
Labour won the July general election vowing to be more ambitious on policies geared towards meeting Britain's climate change commitments, promising among other things to decarbonise the electricity grid by 2030.
On Tuesday, Prime Minister Keir Starmer, in Baku, Azerbaijan for the UN climate change summit, said the UK would aim to reduce greenhouse gas emissions by 81 percent on 1990 levels by 2035, as part of government plans to reach net-zero by 2050.
Nations gathering at the summit have pledged to "transition away" from fossil fuels and aim to limit global warming to 1.5 degrees Celsius above preindustrial times.
It comes as research published Wednesday showed planet-warming carbon dioxide emissions from oil, gas and coal rose to a new record high this year.
In Britain, the centre-left government has also ended a ban on new onshore wind projects -- announced by the Conservatives -- and put a stop to new oil and gas exploration licences in the North Sea.
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