Coal craze: Global consumption headed for record high despite renewables push

• Global coal consumption is expected to hit a record high in 2023.
• India’s demand is up 8%, and China’s is up 5%.
• Renewables are expected to pick up pace.

The International Energy Agency (IEA) stated in research on Friday that the world’s coal consumption is predicted to hit a record high in 2023 due to the continued strong demand in growing and developing nations.

According to the IEA, the demand for coal is predicted to increase by 1.4% in 2023 and surpass 8.5 billion metric tons for the first time. This growth will be driven by 8% in India and 5% in China, respectively, as a result of growing electricity demand and weak hydropower generation.

According to the analysis, however, the usage of coal is expected to decline by about 20% in the US and the EU in 2023.

The biggest increase in renewable capacity over the next three years should help reduce usage of coal by 2.3% relative to 2023 levels, even in the absence of stricter clean energy policies, although the fall in coal use is not anticipated until 2026.

Nonetheless, the research predicted that by 2026, worldwide consumption will still be well over 8 billion metric tons. It further stated that a significant reduction in the use of unabated coal would be necessary to meet the targets set forth in the Paris Agreement.

According to the IEA, China will be responsible for over half of the world’s renewable energy expansion over the next three years, which will result in a decline in coal consumption in the nation in 2024 and a plateau through 2026.

China consumes half of the world’s coal; therefore, the pace at which clean energy is deployed, the state of the weather, and structural changes in the Chinese economy will all have a big impact on the coal market in the years to come, according to the report.

Three-quarters of the world’s coal consumption this year is predicted to come from China, India, and Southeast Asia, up from 25% in 1990, with Southeast Asian consumption predicted to surpass that of the United States and the European Union in 2023.

According to the analysis, the only regions where coal usage is predicted to increase considerably through 2026 are India and Southeast Asia.

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