Record-breaking global coal demand set to remain at all-time high in 2023
Global News
Global coal consumption set a new record in 2022, prompting calls from the International Energy Agency for more investments in clean energy.
Global coal consumption reached a new record in 2022 and is expected to stay near those high levels this year, the International Energy Agency (IEA) reported Thursday in their latest market update.
Coal consumption rose by 3.3 per cent to 8.3 billion tonnes in 2022. According to the IEA, strong growth in Asia in both power generation and industrial applications are continuing to outpace declines in Europe and the United States.
“In 2023 and 2024, small declines in coal-fired power generation are likely to be offset by rises in industrial use of coal, the report predicts, although there are wide variations between geographic regions,” the IEA said in a news release.
China, India and Southeast Asian countries together are expected to account for three out of every four tonnes of coal consumed worldwide this year. Demand from the two largest consumers, China and India, grew by over five per cent during the first half of 2023.
Meanwhile, coal demand in the European Union was minimal in 2022, “as a temporary spike in coal-fired power generation was almost offset by lower use in industry,” the IEA said.
The move away from coal in the U.S. is being heightened by lower natural gas prices, the agency says.
While regions like Europe and the U.S. are showing declines in coal use, the IEA says the new global record for coal demand highlights the need for stronger policies and investments in clean energy.
“Coal is the largest single source of carbon emissions from the energy sector, and in Europe and the United States, the growth of clean energy has put coal use into structural decline,” said IEA Director of Energy Markets and Security Keisuke Sadamori.
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