The Rise and Fall of Global Coal Consumption: Trends, Forecasts, and Environmental Impact

2023-12-15 11:43:56

The planet has never consumed so much coal: in 2023, global demand reached 8.53 billion tonnes, a historic record, mainly due to the sharp increase in China, India, and Indonesia, indicated Friday the International Energy Agency (IEA).

While the European Copernicus Observatory estimated at the beginning of November “with near certainty” that average temperatures on the planet would this year exceed the annual record set in 2016, the IEA established that the tons of coal consumed in the world this year would exceed the previous record dating from 2022.

The combustion of coal to produce energy or in industry emits a large part of the CO2 responsible for global warming into the atmosphere.

Asia, a bad student

It is in Asia that the appetite for coal is the greatest: according to the IEA, this year, consumption in China will have jumped by 220 million tonnes (+4.9%) compared to 2022, that of India will have increased by 98 million tonnes (+8%), and that of Indonesia by an additional 23 million tonnes (+11%).

On the other hand, consumption slowed down sharply in Europe (decrease of 107 million tonnes, -23%), and in the United States (decrease of 95 million tonnes, -21%), mainly due to the change in power plants which are gradually abandoning coal to save the climate, and the weakness of industrial activity.

The IEA admits its difficulty in issuing forecasts for Russia, the world’s fourth largest consumer of coal, due to the war in Ukraine. The forecasts for Ukraine are also “uncertain”, indicates the Agency.

>> Why does China consume so much coal? The explanations of our correspondent in the 12:30 p.m.: Why does China consume so much coal? / 12:30 p.m. / 1 ​​min. / today at 12:34

Recession from 2024?

“From 2024”, global consumption should begin a downward trend, however, estimates the IEA in its forecasts published two days following the closing of the 28th UN international meeting on climate in Dubai, which requested a gradual abandonment of fossil fuels, including coal, to fight once morest global warming.

The IEA is counting in particular on a very significant increase in renewable energies (wind, solar) on the planet to “push global coal consumption on a downward trajectory”. Consumption of “coal should reach its peak in 2023” estimates the Agency.

>> Read: Is the agreement reached at COP28 in Dubai really historic?

In the European Union, the proliferation of renewable energies is favoring the decline of coal. In Germany, lignite and coal-fired power plants are expected to significantly reduce by 2025, as solar and wind power plants which emit almost no CO2 are deployed.

Beyond the use of coal to power power plants, consumption should not weaken in its industrial uses such as cement factories.

Paradoxically, in the case of Indonesia, it is the extraction and refining of nickel, booming to supply the automobile battery markets of the energy transition, which favors the consumption of coal in mining processes.

>> Read: When Germany razes villages for coal mines

More than 50% in China

China nevertheless remains by far the biggest player on the coal scene, with more than half of world consumption (54%) alone. “More than 60%” of the coal used in China is used to generate electricity, and the country continues to build coal-fired power plants (52 GW of new projects have been approved in 2023).

But the IEA expects a turning point in 2023 if the country does not suffer too many cold (or hot) waves which influence the use of power plants.

According to the agency, China’s coal consumption for electricity generation is expected to fall by 175 million tonnes over the 2024-26 period, to 2.8 billion tonnes.

Consequently, it is India which will become the “engine” for the upward pressure on global coal demand until 2026, underlines the IEA.

>> Read: Switzerland, a coal hub with 245 active companies

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