Worldwide Coal Consumption Reaching Peak in 2023

The International Energy Agency (IEA) stated in a Friday report that worldwide coal consumption is poised to achieve a historic peak in 2023, fueled by sustained demand in emerging and developing economies.

Projections indicate a 1.4% increase in global coal demand for 2023, surpassing 8.5 billion metric tons for the first time. Conversely, the report notes a substantial expected decline of around 20% in coal usage for both the European Union and the United States in 2023.

The report suggests that coal consumption is unlikely to diminish until 2026. During this period, a significant expansion in renewable capacity over the next three years is anticipated to contribute to a 2.3% reduction in usage compared to 2023 levels, even in the absence of stronger clean energy policies.

Despite this reduction, the report forecasts global consumption to remain well above 8 billion metric tons in 2026. Meeting the objectives outlined in the Paris Agreement would necessitate a more rapid decline in unabated coal use.

The IEA predicts that China will lead global renewable expansion over the next three years, resulting in a decline in coal demand in 2024 and a subsequent plateau through 2026. China will significantly influence future coal trends, contingent on the pace of clean energy deployment, prevailing weather conditions, and structural shifts in the Chinese economy.

The IEA reports an indication of 1.4% increase in coal demand in 2023, surpassing 8.5 billion metric tons for the first time.