The Strategist

Bloomberg: World falls back into coal dependence

04/26/2022 - 09:29

The world's reliance on coal is growing as a result of the Ukraine situation. Coal-fired power facilities that were previously dismantled in Germany and Italy will now be relaunched, reports Bloomberg.

Increasingly more coal-laden ships are leaving South Africa for Europe. As the agency points out, coal is seeing its strongest recovery in a decade in the United States, while China is reviving old mines and developing new ones. The latter plans to raise coal output capacity by 300 million tonnes this year (plus 7 percent).

Due to gas shortages and increased electricity demand, the world's reliance on the dirtiest fossil fuel has grown.

According to Bloomberg, the scenario is causing power producers to compete for supply and hike prices to record highs. Experts believe that higher costs will continue to feed rising inflation.

Utilities around the world continue to want more coal, despite the fact that burning it remains the most significant barrier to combating climate change. According to the International Energy Agency (IEA), the world produced more coal-fired power in 2021 than ever before (up 9 percent year-on-year).

In 2022, total consumption is predicted to rise by another 2%.