Energy Crisis Spurs Coal’s Resurgence
Coal consumption worldwide is set to reach 8.7 billion tonnes in 2023, surpassing all previous records. The global gas crisis, triggered by Russia’s invasion of Ukraine, has driven countries to rely more heavily on coal as a cost-effective alternative.
The International Energy Agency (IEA) reports unprecedented levels of coal production, trade, and power generation since the crisis began. These increases mark a stark reversal from the decline in coal use during the Covid-19 pandemic. Despite international efforts to curb fossil fuel dependence, the IEA predicts that coal use will remain near these peak levels until 2027.
Countries facing steep gas prices continue to turn to coal, reinforcing its position as a vital energy source during uncertain times.
Asia Dominates the Global Coal Market
China, the largest coal consumer in the world, drives much of the current demand. The country uses 30% more coal than all other nations combined. In 2024, China’s coal use is expected to grow 1%, reaching 4.9 billion tonnes, another record high.
India also plays a critical role in sustaining global coal consumption. The IEA forecasts a 5% increase in India’s demand, bringing it to 1.3 billion tonnes in 2024. This milestone highlights India’s growing reliance on coal to meet its rapidly expanding energy needs.
In contrast, developed economies like the United States and the European Union continue reducing their coal usage. The US is projected to cut coal power generation by 5% in 2023, while the EU anticipates a 12% drop. In the United Kingdom, coal power officially ended in September with the closure of the Ratcliffe-on-Soar plant, ahead of the government’s 2024 deadline.
The growing energy needs of China and India keep global coal demand high, even as developed nations transition away from the fossil fuel.
Renewable Energy Growth Curbs Coal Use but Challenges Remain
Renewable energy advancements are helping stabilize coal demand despite rising electricity needs worldwide. The IEA predicts that global coal consumption will plateau through 2027, largely due to the rapid adoption of clean energy technologies.
Keisuke Sadamori, the IEA’s director of energy markets, underscores the role of renewables in reshaping the global electricity landscape. “Clean energy technologies are transforming electricity production, which accounts for two-thirds of coal use,” he explains. These technologies prevent further spikes in coal demand while supporting the energy needs of developing economies.
However, challenges persist. Short-term disruptions, such as extreme weather events or surges in electricity demand, could increase coal reliance, particularly in China. Such events may temporarily hinder the global energy transition despite ongoing investments in renewable solutions.
Balancing Energy Growth with Sustainability Goals
China and India’s growing reliance on coal underscores the complexity of balancing energy growth with environmental sustainability. Their decisions will heavily influence global coal trends in the coming years.
While renewable energy offers a path forward, the persistent dependence on coal highlights the challenges of achieving a sustainable energy transition. Accelerating investments in clean energy technologies will be essential to reduce coal reliance and mitigate environmental impacts.
Coal remains a dominant force in the global energy market. Its ongoing importance stresses the urgency of developing scalable, sustainable solutions to meet growing energy demands while safeguarding the environment.
