The world consumption of coal, the main source of CO2 emissions globally, is expected to reach a new record in 2022, the International Energy Agency (IEA) noted in a report published on Friday.
The IEA recently noted that the energy crisis that is driving up the cost of gas and electricity has given a major boost to the rollout of renewable energies — with power generation from renewables rising to a new record — and predicted this could see coal being overtaken as the largest source of electricity generation by 2025. However, a more recent report has cast a shadow over what would have been a major chance to prevent catastrophic climate breakdown.
On Friday, the agency said that while global coal demand is set to increase only marginally in 2022, this will be enough to push it to an all-time high. "Global coal use is set to rise by 1.2% in 2022, surpassing 8 billion tonnes in a single year for the first time and eclipsing the previous record set in 2013," the report read.
Close to peak, but not there yet
The publication of this report comes amid the ongoing energy crisis. The increase is mainly a result of Europe's temporary increased reliance on coal for generating power due to Russia’s sharp reductions in natural gas flows. By 2025, European coal demand is expected to decline below 2020 levels, the agency noted.
However, the IEA warned that coal consumption will remain flat at a high level through 2025 in the absence of stronger efforts to accelerate the transition to clean energy, meaning it will continue to be the global energy system’s largest single source of carbon dioxide emissions "by far."
“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,” said Keisuke Sadamori, the IEA’s Director of Energy Markets and Security. “Coal demand is stubborn and will likely reach an all-time high this year, pushing up global emissions."
The agency reiterated its previous findings that today’s crisis is accelerating the deployment of renewables, energy efficiency and heat pumps, which will moderate coal demand in the coming years as advanced economies replace it with renewable energy sources.
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This is also resulting in the lack of a surge in investment in export-driven coal projects, reflecting caution among investors and mining companies about the medium- and longer-term prospects for coal.
However, emerging and developing economies in Asia are set to increase coal use to help power their economic growth. "Developments in China, the world’s largest coal consumer, will have the biggest impact on global coal demand in the coming years, but India will also be significant," the report noted.
