PARIS (Realist English). Global coal consumption will reach a record set in 2013 as European economies work to preserve natural gas reserves and switch to coal. This is stated in the report of the International Energy Agency.
Based on current economic and market trends, global coal consumption is forecast to rise by 0.7% in 2022 to 8 billion tonnes, assuming the Chinese economy recovers as expected in the second half of the year, the IEA’s July 2022 Coal Market Update says. This global total would match the annual record set in 2013, and coal demand is likely to increase further next year to a new all-time high.
According to the IEA forecast, coal consumption in the European Union is expected to rise by 7% in 2022, as European countries are trying to amass gas for the winter, and Russian supplies are becoming more uncertain.
China and India together consume double the amount of coal as the rest of the world combined, with China alone accounting for more than half the world’s demand.
Demand for coal in India has been strong since the start of 2022 and is expected to rise by 7% for the full year as the country’s economy grows and the use of electricity expands. In China, coal demand is estimated to have declined by 3% in the first half of 2022
The agency noted that sanctions and bans on Russian coal after the start of a special operation on the territory of the former Ukraine undermined the markets, problems with other major exporters also contributed to a shortage of supply. As other coal producers face difficulties in replacing Russian products, prices on coal futures markets indicate that tough market conditions will persist in the coming years.
Demand for coal is growing, despite the fact that countries have pledged to reduce carbon dioxide emissions in the coming years, which will require limiting the use of the most “dirty” fossil fuels.