Record global use of coal due to growing power consumption

Global use of coal to generate electricity rose to a record high of 8.77 billion tons this year. According to a report by the International Energy Agency, almost one-third was burned in Chinese power plants.

Due to the energy transition, electricity use is proliferating in many countries. Electricity is increasingly used for applications such as electric cars, heating homes, and power-intensive data centers.

Weather conditions

Although coal consumption to generate electricity has fallen sharply in Europe and the United States, this is being offset by increasing demand in India and China. In India, 6 percent more polluting coal was burned this year, while in Europe and the US, this fell by 12 and 5 percent, respectively. Global coal demand is set to plateau through 2027.

China has built more nuclear power plants and is drawing more power from wind turbines and solar farms, which should limit coal consumption growth until 2027. However, the generation of renewable energy depends greatly on weather conditions. “As a result, demand in 2027 could be 140 million tons higher or lower than forecast,” IEA warns.

Most polluting fossil fuel

Researchers say that coal demand will remain at or even exceed its current high level in the coming years. This year’s coal demand was about 9 percent higher than forecast a few years ago.

Today, coal prices remain 50% higher than the average between 2017 and 2019. Asia remains the center of international coal trade, with all the largest importing countries in the region, including China, India, Japan, Korea, and Vietnam. In contrast, the largest exporters include Indonesia and Australia.

According to the Paris Climate Agreement, coal use must decrease drastically this decade to be climate-neutral by 2050 and limit global warming. However, it seems unlikely that this will happen. According to the IEA, coal, the fossil fuel that produces the most CO2 emissions, remains a dominant energy source worldwide.