The Strategist

IEA: World coal consumption to hit record high

12/22/2023 - 02:33

The International Energy Agency (IEA) projects that global coal consumption might reach a record 8.54 billion tons in 2023, an increase of 1.4%.

According to the organization's most recent assessment, there will be a discernible decrease in the demand for coal by the end of this year in all major nations, with the United States and the European Union experiencing the biggest drops at 21% and 24%, respectively.

Nonetheless, the rise in consumption in developing nations—mainly in China (by 5% to 4.74 billion tons) and India (by 8% to 1.26 billion tons)—will make up for the decline in consumption in developed nations. There will also be an increase in consumption in the Philippines, Vietnam, and Indonesia, which together account for more than 70% of the world's coal demand. As a result, the IEA documents the quickening of the transfer in coal consumption and production to Asian nations.

The IEA predicts that China will continue to have a major influence on the future of coal in the energy sector. The demand for it in China is predicted to decline in 2024 and stay at a comparatively constant level of roughly 4.5 billion tons annually until 2026.

The organization projects that renewable energy sources, such as solar energy, will replace the "dropped out" volumes of coal. The International Energy Agency (IEA) projects that worldwide coal demand will decline by 2.3% to 8.34 billion tons by 2026, even assuming other nations do not quicken their pace of green energy deployment.