The global coal consumption surge in 2023 reaches a record 8.7 billion tonnes due to the gas crisis, with China and India leading demand, while renewable energy adoption limits growth.
Coal use worldwide is set to reach 8.7 billion tonnes in 2023, breaking previous records. This surge comes amid the global gas crisis triggered by Russia’s invasion of Ukraine, which has driven up energy prices and forced countries to seek more affordable energy sources.
Coal Consumption Surges Amid Global Gas Crisis
According to the International Energy Agency (IEA), coal production, trade, and power generation have risen sharply since the crisis began. This rebound reverses the declines observed during the Covid-19 pandemic. The IEA predicts that coal consumption will remain elevated until at least 2027, even as countries ramp up investments in renewable energy.
Countries grappling with rising energy costs continue to turn to coal as a dependable and cost-effective energy source. Despite the push for cleaner energy, coal remains a dominant player in meeting global power demands.
Asia Drives the Surge in Coal Use
China, the world’s largest coal consumer, remains a major driver of global coal demand. The IEA predicts that China’s coal consumption will grow by 1% in 2024, reaching 4.9 billion tonnes, setting a new record.
India is also experiencing significant growth, with coal demand expected to rise by over 5% in 2024, reaching 1.3 billion tonnes. This milestone, previously seen only in China, reflects India’s increasing reliance on coal to meet its rapidly expanding energy needs.
In contrast, developed economies such as the United States and the European Union are reducing their use of coal. US coal power generation is forecast to decline by 5% in 2023, while the EU anticipates a 12% drop. The UK officially ended coal power generation in September with the closure of the Ratcliffe-on-Soar plant, ahead of its planned 2024 deadline.
Despite these declines in wealthier nations, the rising coal demand in developing economies ensures that global consumption remains at record levels.
Renewables Help Curb Coal Growth
The widespread adoption of renewable energy helps moderate coal’s growth, despite the increasing global demand for electricity. The IEA predicts that coal consumption will plateau through 2027, thanks to advancements in clean energy technologies and the continued promotion of renewable energy policies.
Keisuke Sadamori, the IEA’s director of energy markets, highlights the crucial role that renewables are playing in transforming global coal consumption. “Clean energy technologies are transforming electricity production, which accounts for two-thirds of coal use,” he explains. These technological advancements are key to slowing the rise of coal demand even amid growing energy needs.
However, challenges persist. Weather variations and unexpected surges in electricity demand could lead to short-term increases in coal reliance, particularly in China, the largest coal consumer. Extreme weather events or sudden energy shortages may disrupt progress toward a more sustainable energy future.
Navigating Coal’s Role in a Changing Energy Landscape
The growing reliance on coal in China and India underscores the difficulties in reducing global dependence on this fossil fuel. The energy policies of these two nations will play a critical role in shaping global coal consumption trends over the next several years.
Renewable energy offers a potential solution to curbing coal use, but the expanding energy needs of developing economies make this transition more complex. Accelerating investments in cleaner energy technologies is essential to reducing coal’s environmental impact and ensuring a sustainable energy future.
As coal continues to fulfill a critical role in the global energy mix, nations must find ways to balance economic growth with environmental responsibility. This challenge underscores the urgency of accelerating the transition to cleaner, more sustainable energy sources.