Global coal demand to remain at record levels in 2023: Report
New Delhi: Global coal consumption, which hit an all-time high in 2022, is expected to stay at those levels in 2023, driven by robust growth in Asia’s power generation and industrial sectors, despite declines in the United States and Europe, according to the latest market update from the International Energy Agency (IEA). In 2022, coal consumption surged 3.3% to a staggering 8.3 billion tonne, setting a new all-time record.
The IEA’s mid-year coal market update predicts that 2023 will witness coal consumption hovering around this record level due to robust growth in Asia for power generation and industrial applications, offsetting declines in the United States and Europe. Notably, the report highlights that small declines in coal-fired power generation in 2023 and 2024 are expected to be compensated by an increase in the industrial use of coal.
However, variations in coal demand across geographic regions are evident. The major contributors to global coal consumption in 2023 are projected to be China, India, and Southeast Asian countries, together accounting for a staggering three-quarters of total coal consumption worldwide.
While the European Union saw minimal growth in coal demand in 2022, primarily due to a temporary surge in coal-fired power generation balanced by lower use in industry, the trend is expected to change this year. European coal consumption is predicted to witness a significant decline in 2023 as renewable energy sources expand and nuclear and hydropower recover from previous slumps.
Similarly, the United States is also transitioning away from coal, largely influenced by lower natural gas prices. The coal market has endured a turbulent few years, marked by the shock of the Covid-19 pandemic in 2020, a
. Read more on livemint.com
