The International Energy Agency reported today, Friday, that global coal usage is expected to reach a record level in 2023, driven by strong demand in emerging and developing economies. The agency added that coal demand is expected to rise by 1.4% in 2023, exceeding 8.5 billion tons for the first time, with anticipated growth in usage of eight percent in India and five percent in China due to increasing electricity demand and weak hydropower production.
However, the report noted that coal usage in the European Union and the United States is expected to decline by about 20% each in 2023. A decrease in coal usage is not anticipated until 2026, when a significant increase in renewable energy production capacity over the next three years is expected to reduce usage by 2.3% compared to 2023 levels, even in the absence of clean energy policies. Nevertheless, the report stated that global consumption is projected to remain well above eight billion tons in 2026.
It added that coal produced and used without employing technologies that reduce greenhouse gas emissions needs to decline much more rapidly in order to meet the targets set by the Paris Agreement. The International Energy Agency expects China to account for more than half of the global expansion in renewable energy usage over the next three years, leading to a decrease in its coal demand in 2024 and stability until 2026. The report also mentioned that half of the world's coal usage comes from China, meaning that forecasts related to coal usage will be significantly influenced in the coming years by the pace of clean energy adoption, weather conditions, and structural changes in the Chinese economy.
