Global coal demand is expected to return to record levels this year, the Paris-based International Energy Agency said on Thursday.
Global coal consumption will rise slightly in 2022 and is expected to return to the record levels of nearly a decade ago, the IEA said in its July Coal Market report.
Global coal consumption rebounded about 6% last year, and based on current economic and market trends, the IEA expects it to rise another 0.7% this year to 8 billion tons, matching the annual record set in 2013. Demand for coal is likely to rise further next year to record highs.
The report cites three main reasons: first, coal remains a key fuel for power generation and a range of industrial processes; Second, soaring natural gas prices have led some countries to shift some of their fuel consumption to coal; Third, the fast-growing Indian economy has boosted the country’s demand for coal.Especially after the outbreak of the conflict between Russia and Ukraine, due to the increasing Western sanctions on Russia, Russian energy has been boycotted by some countries. As energy supplies tighten, the global scramble for coal and gas is intensifying and power generators are scrambling to stock up on fuel.
In addition, the recent extreme heat wave in many places has exacerbated the power supply tension in various countries. The IEA expects coal demand in India and the European Union to rise 7 per cent each this year.
However, the agency noted that the future of coal remains highly uncertain, as its use can exacerbate the climate problem, and “decanting” has become the top carbon neutral goal of countries in the global trend to reduce emissions.