Coal Use Set to Reach New Peak Amid Gas Crisis

Global coal consumption is expected to hit a record 8.7 billion tonnes this year, remaining at near-record levels for years due to a gas crisis stemming from Russia’s invasion of Ukraine, The Guardian reported yesterday.

The International Energy Agency (IEA) reports that coal production and power generation have surged since the conflict raised global gas prices.

Consumption is on track to reach 8.77 billion tonnes by the end of 2024, largely driven by power plants, especially in China, which consumes 30% more coal than the rest of the world combined. In contrast, coal power generation in developed economies like the US and EU has peaked, with declines of 5% and 12% expected this year.

China’s coal demand is projected to rise by 1% in 2024, reaching 4.9 billion tonnes, while India anticipates a 5% increase to 1.3 billion tonnes. The IEA notes that renewable energy growth will help cap coal use, despite rising electricity demand in developing countries.