Global demand for coal is growing
2022.12.16 01:24
Global demand for coal is growing
Budrigannews.com – According to a report released on Friday by the International Energy Agency (IEA), global coal consumption is expected to reach an all-time high in 2022 and remain at similar levels for the next few years if stronger efforts are not made to transition to a low-carbon economy.
High gas costs following Russia’s attack of Ukraine and ensuing disturbances to supply have driven a few nations to go to somewhat less expensive coal this year.
Hydropower generation has also been very weak, particularly in Europe, where France had to shut down its nuclear reactors for maintenance, while heatwaves and droughts in some areas have also increased electricity demand.
According to the IEA’s annual report on coal, global coal use is expected to rise by 1.2% this year, surpassing the previous record of 8 billion tonnes set in 2013.
It also says that until 2025, coal consumption will stay the same at that level because declining demand in emerging Asian economies will offset falling demand in mature markets.
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As a result, coal will continue to be the largest single contributor to carbon dioxide emissions from the global energy system.
India is anticipated to experience the greatest increase in coal demand, at 7%, followed by the European Union at 6% and China at 0.4 percent.
Keisuke Sadamori, the director of energy markets and security at the International Energy Agency, stated, “The world is close to a peak in fossil fuel use, with coal set to be the first to decline, but we are not there yet.”
As Russian gas has decreased to a trickle and more people have switched from gas to coal due to high gas prices, Europe’s demand for coal has increased.
According to the report, European coal demand is expected to fall below 2022 levels by 2025.
Worldwide coal-terminated power age is set to ascend to another record of around 10.3 terawatt hours this year, while coal creation is conjecture to ascend by 5.4% to around 8.3 billion tons, additionally an untouched high.
Creation is supposed to arrive at a top one year from now however by 2025 ought to tumble to under 2022 levels.
China, India, and Indonesia, the three biggest producers of coal, will all break production records this year. However, despite the high prices and good margins for coal producers, there is no sign of a surge in investment in export-driven coal projects.
According to the report, this reflects investors’ and mining companies’ cautiousness regarding coal’s medium- and long-term prospects.
