Workers photographed on top of a train loaded with coal in China. Global use of coal is projected to increase by 1.2% this year and hit a record high, according to the International Energy Agency.
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Global coal use is on course to increase by 1.2% to hit a record high this year, according to a report from the International Energy Agency.
It comes at a time of significant volatility and uncertainty in global energy markets, with the IEA stating that Russia’s invasion of Ukraine in Feb. 2022 had “sharply altered the dynamics of coal trade, price levels, and supply and demand patterns in 2022.”
“Coal markets have been shaken severely in 2022, with traditional trade flows disrupted, prices soaring and demand set to grow by 1.2%, reaching an all-time high and surpassing 8 billion metric tons for the first time,” the IEA said in its Coal 2022 report, published Dec. 16.
The price of fossil fuels saw a substantial jump this year, the agency said, “with natural gas showing the sharpest increase.”
“This has prompted a wave of fuel switching away from gas, pushing up demand for more price competitive options, including coal in some regions,” it added.
Despite the increase in coal demand, the picture is a complex one. The IEA noted that “higher coal prices, strong deployment of renewables and energy efficiency, and weakening global economic growth are tempering the increase in overall coal demand this year.”
It said that coal use in electricity generation was set to rise by a little over 2% this year. Coal usage in industry is actually slated to fall by more than 1%, with this decline attributed to lower steel and iron production.
“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,” IEA Director of Energy Markets and Security Keisuke Sadamori said in a statement. “Coal demand is stubborn and will likely reach an all-time high this year, pushing up global emissions.”
“At the same time, there are many signs that today’s crisis is accelerating the deployment of renewables, energy efficiency and heat pumps — and this will moderate coal demand in the coming years,” he added.
Government policies would be “key to ensuring a secure and sustainable path forward,” he said.
Coal use has a substantial impact on the environment, with environmental organization Greenpeace describing it as “the dirtiest,…
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