🌍 Global Coal Consumption Breaks Records Again
In an unexpected turn of events, the world has never consumed more coal than it does today. The International Energy Agency (IEA) recently announced in Paris that global coal consumption increased by 1.4% to a staggering 8.5 billion tons. While the IEA remains optimistic that peak consumption could be reached in 2023, they also expect a decline in coal consumption starting from the following year.
Last year marked the previous peak in coal consumption. However, with 2023 shaping up to be the warmest year on record globally, it seems this trend might continue. Despite a dramatic decrease in coal demand in Europe and the USA, Asia has seen an increase in its coal consumption.
China, a key player in this narrative, consumes more than half of the world's total coal production. In 2023, China alone absorbed an additional 220 million tons of coal, up by 4.9%. This jump in consumption has made China a superpower in the global coal market. The majority of this coal is utilized for electricity production.
India, another significant player, experienced an 8% increase in coal consumption in 2023, with Indonesia following suit with a 11% increase. The demand for coal in Indonesia is amplified by the nickel production necessary for manufacturing batteries for electric vehicles.
Russia holds the fourth position in global coal consumption. However, assessing its exact consumption has been challenging due to the ongoing conflict in Ukraine.
Although a decline in coal consumption is projected to commence from 2024, the total consumption in 2023 is predicted to surpass the previous record set in the year prior. The significant rise in coal consumption in Asia, especially China, has played a substantial role in this global pattern.
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(Enrichment Data Integrated)
China and India are the leading forces behind the increase in global coal consumption in 2023. China, responsible for more than half of the world's coal demand, witnessed an increase of 14.4% in coal imports in 2024, reaching a record high of 542.7 million metric tons. This surge in coal imports is a critical component of China's strategy to prepare for potential power shortages caused by extreme weather events.
India's demand for coal is strongly associated with its focus on economic and infrastructure development. With a projected growth rate of 8-9% in steel demand in 2025, India will continue to rely heavily on coal, leading to a relentless climb in its power demand. Despite India's aim to meet 50% of its electricity needs from renewable energy sources by 2030, coal remains an essential component in meeting its power demands.
These two countries, particularly China, have significantly contributed to the rise in global coal consumption in 2023, pushing the total consumption beyond the previous record set in the previous year. With their continued reliance on coal, it remains to be seen how closely the IEA's suggested decline timeline aligns with the reality of global coal consumption trends.
