Coal consumption peaks in 2023; decline likely next year onward
The International Energy Agency (IEA) predicts that global coal consumption will start to decrease in 2024 after reaching its peak this year. This comes as roughly 200 nations at the COP28 UN climate conference agreed to move away from fossil fuels in order to achieve net-zero emissions by 2050, and limit global warming. Coal is the biggest energy-related source of CO2 emissions and plays a significant role in climate change.
Record coal consumption driven by China, India, and Indonesia
Coal use increased by 1.4% in 2023, reaching a record 8.5 billion tons, with growth in India, China, and Indonesia offsetting declining demand in Europe and the US. The IEA stated that China's consumption rose by 220 million tons or 4.9%, while India saw an 8% increase and Indonesia experienced an 11% rise. On the other hand, Europe's consumption dropped by 23% or 107 million tons, and the United States saw a decrease of 95 million tons or 21%.
Renewables expansion to drive decline in coal demand
The Paris-based agency expects a downward trend in global coal demand starting next year, as renewable power generation from wind and solar energy continues to grow. The decline in consumption is mainly due to weaker industrial activity and a shift from coal-fired power generation to renewable energy sources. The IEA noted that predicting demand in Russia, the world's fourth-largest coal consumer, is challenging due to the ongoing conflict in Ukraine.
Should we worry?
According to scientists, Earth's temperature has climbed by 1.2-degree Celsius above pre-industrial levels. As incidents of droughts, storms, and wildfires increase worldwide, 2023 might become the hottest year on record.
