Global coal consumption hit a new record high in 2022 and will stay near that level this year as strong growth in Asia outpaced declines in the US and Europe, the International Energy Agency (IEA) said on Thursday.
Coal consumption last year rose by 3.3% to 8.3 billion tonnes, according to the IEA’s mid-year Coal Market Update.
This year and next year, small declines in coal-fired power generation were likely to be offset by rises in industrial use of coal, the report added.
Global coal demand is estimated to have grown by about 1.5% in the first half of this year to a total of about 4.7 billion tonnes, lifted by an increase of 1% in power generation and 2% in non-power industrial uses.
In the first half of this year, coal demand fell faster than expected in the US and the European Union – by 24% and 16%, respectively.
However, demand from the two largest users, China and India, grew by more than 5%, more than offsetting declines elsewhere.
In 2023, China and India could account for nearly 70% of the world’s global coal consumption, while the US and the European Union could account for just 10%, the report said.
“Coal is the largest single source of carbon emissions from the energy sector, and in Europe and the US, the growth of clean energy has put coal use into structural decline,” said IEA director of energy markets and security Keisuke Sadamori.
“But demand remains stubbornly high in Asia, even as many of those economies have significantly ramped up renewable energy sources,” he added.
REUTERS