According to the International Energy Agency, coal consumption worldwide is anticipated to set a new record this year due to the continued high demand for the highly polluting fossil fuel.
Some nations have switched to relatively less expensive coal this year as a result of high gas prices brought on by Russia's invasion of Ukraine and the ensuing supply disruptions. Additionally, some regions have experienced heat waves and droughts that have increased electricity demand, decreased hydropower, and resulted in very low nuclear generation, particularly in Europe, where France had to shut down nuclear reactors for maintenance.
As per a recent report from the Paris-based organization, even though coal use increased by only 1.2% in 2022, the increase caused it to reach a record-breaking high of more than 8 billion metric tonnes, breaking the previous record set in 2013.
In the absence of more aggressive efforts to speed up the transition to clean energy, the agency predicted that "the world's coal consumption will remain at similar levels in the following years." It added that "robust demand" in developing Asian economies would offset falling use in mature markets. This indicates that coal will remain by far the biggest single source of carbon dioxide emissions in the entire global energy system, according to the IAE.
To keep global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) this century, the use of coal and other fossil fuels must be drastically reduced.
The ambitious goal, which governments committed to in the 2015 Paris climate agreement, will be challenging to achieve, according to experts, given that global average temperatures have already increased by 1.2 degrees Celsius since pre-industrial times.
According to the IEA, higher natural gas prices brought on by Russia's conflict in Ukraine have increased reliance on coal as a source of energy. Keisuke Sadamori, the agency's director of energy markets and security, stated that "the world is close to a peak in the use of fossil fuels, with coal set to be the first to decline," but added that "we are not there yet."
However, the report predicted that by 2025, European coal demand would be lower than in 2022.
This year, coal-fired power generation is anticipated to reach a new high of roughly 10.3 terawatt hours, and coal production is anticipated to increase by 5.4% to roughly 8.3 billion tonnes, also a record high.
Production should peak next year and then decline to levels below those of 2022 by 2025. China, India, and Indonesia, the world's top three coal producers, will all set new production records this year, but despite high coal prices and favorable margins for coal miners, there is no indication that investment in export-oriented coal projects is soaring.
This reflects the hesitancy of financiers and mining firms regarding coal's medium and long-term prospects.
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