IEA: Global coal demand to remain close to last year's record level this year

Global coal demand reached a record high last year and is likely to remain close to that level this year. This is according to a report published today by the International Energy Agency (IEA). It says that strong growth in Asia will offset falling demand in Europe and the United States.

Coal consumption rose by 3.3 percent last year to 8.3 billion tonnes, a record, the report says. It forecasts that in 2023 and 2024, growth in industrial coal use will offset a slight decline in coal-fired power generation. However, there are major differences between regions.

China, India and Southeast Asian countries are expected to consume three out of every four tonnes of coal used worldwide this year. In the European Union, growth in coal demand was minimal last year. A temporary increase in coal-fired power generation was almost entirely offset by lower coal use in industry.

The IEA expects coal consumption in Europe to fall sharply this year as renewable energy capacity expands and nuclear and hydropower partially recover from recent declines. In the United States, the shift away from coal is being reinforced by lower natural gas prices.