Global Coal Consumption Projected to Reach Record High in 2023, Says International Energy Agency

The International Energy Agency (IEA) has forecasted that global coal consumption is set to achieve a record high in 2023, primarily driven by sustained demand in emerging and developing economies. According to the IEA’s report released on Friday, coal usage is anticipated to rise by 1.4 percent, surpassing 8.5 billion tonnes for the first time. This surge is attributed to an 8 percent growth in India and a 5 percent increase in China, fueled by escalating electricity demand and weak hydropower output.

Coal, a leading source of CO2 emissions and other greenhouse gases, plays a pivotal role in global warming. China alone contributes to half of the world’s coal consumption, making the trajectory of coal usage contingent on factors like the pace of clean energy adoption, weather conditions, and structural shifts in the Chinese economy.

While coal use is projected to decline by approximately 20 percent this year in the European Union and the United States, predicting demand in Russia—currently the fourth-largest coal consumer—is challenging due to the ongoing conflict in Ukraine.

The IEA highlights that coal consumption is not expected to diminish until 2026. The major expansion of renewable capacity in the next three years is anticipated to contribute to a 2.3 percent reduction in coal usage compared to 2023 levels. The report underscores that global consumption will remain well above 8 billion tonnes in 2026, emphasizing the need for a faster decline in unabated coal use to align with the goals outlined in the Paris climate agreement.

Recent developments at the United Nations COP28 climate talks in Dubai resulted in a landmark agreement pushing nations to transition away from fossil fuels to mitigate climate change’s adverse effects. However, the deal fell short of explicitly calling for a “phase-out” of fossil fuels, opting for the term “transitioning away” to describe a just, orderly, and equitable shift in energy systems. Some observers find this terminology ambiguous and subject to diverse interpretations, while others argue that a more definitive “phase-out” language would send a stronger global message about a complete departure from fossil fuels.

Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#CoalConsumption #IEAReport #GlobalEnergy #SustainableDevelopment #ClimateChange #COP28 #FossilFuels #RenewableEnergy #IndiaEnergy #ChinaEnergy #EnergyTransition #EnvironmentalImpact