Global Coal Consumption Hits All-Time High, Decline From 2024 Anticipated
China's coal consumption increased by a staggering 4.9%, amounting to an additional 220 million tons, according to the International Energy Agency (IEA). Meanwhile, India recorded an 8% increase, and Indonesia saw an impressive 11% spike in coal consumption.
On the other hand, coal consumption in both Europe and the USA experienced significant drops, with a 23% decline in Europe and a 21% decrease in the USA. This drastic shift is primarily due to weaker industrial activity and a growing preference for renewable energy sources.
The IEA predicts a global trend towards decreasing coal demand beginning in 2024. "We expect to witness a drop in global demand for coal from 2024," explained the IEA, based in Paris.
The 2022 World Climate Change Conference in Dubai marked a significant milestone, with nearly 200 participating nations agreeing to transition away from fossil fuel energy production. After strenuous negotiations spanning two weeks, a consensus was reached, marking the potential beginning of the end for fossil fuels.
Further Insight:
- The anticipated decline in global coal consumption can be attributed to various factors. Technological advancements in steelmaking are increasingly making metallurgical coal obsolete, as steel can now be produced without coal. This shift is expected to reduce global met coal consumption substantially[1].
- The IEA anticipates a 1.9% decrease in global met coal consumption in 2024 compared to 2023. Although met coal consumption is expected to increase in India and Indonesia, the drops expected in China and the rest of the world mean overall global met coal consumption is projected to decline by 5.3% between 2023 and 2027[1].
- The expanding use of renewables is contributing to a slowdown in coal-fired generation. In 2024, global coal-fired generation is predicted to plateau after a 1% increase, and the share of global coal-fired generation is expected to drop below 33% for the first time this century due to the strong expansion of low-emissions energy sources[3].
- Regional variations in coal demand are apparent as well. Despite sustained high demand in Asia (particularly in China and India), due to rising energy demands and infrastructure development, there are significant declines in coal consumption in Europe and the USA[4].
- Economic factors, such as the increasing competitiveness of renewables and natural gas, along with environmental concerns, are driving the decline in coal consumption[3].
In 2024, coal consumption in Asia is likely to reach its peak, with China and India continuing to drive regional consumption. Nevertheless, the IEA's prediction of a decline in global coal consumption from 2024 could result in significant reductions in greenhouse gas emissions, playing a critical role in addressing climate change.
