IEA Sees Global Coal Consumption Hitting All-time High In 2022

Global coal consumption will rise to an all-time high in 2022 and remain at similar levels for the next few years if stronger efforts towards deploying low-carbon energy sources are not made, the International Energy Agency (IEA) said on Friday.

It said that following disruptions to gas supplies and high prices, many countries turned to coal this year as it is cheap.

The year also saw heatwaves and droughts in many regions, increasing electricity demand and reducing hydropower. At the same time, nuclear power generation remained weak, especially in Europe.

It predicts that coal consumption will remain flat at that level until 2025 as strong demand will come from emerging Asian economies even as mature markets make a massive shift to renewables.

The IEA said that the most significant increase in coal demand is expected to be in India at 7 per cent, followed by the European Union at 6 per cent and China at 0.4 per cent.

The report said that by 2025, Europe’s coal demand is expected to decline below 2022 levels.

It added that the three largest coal producers – China, India and Indonesia will hit their production. However, the report said there are no signs of surging investment in export-driven coal projects.

This reflects caution among investors and mining companies about the medium – and longer-term prospects for coal, it added.