Global coal consumption is on course to reach a new high in 2022, exceeding eight billion tonnes for the first time ever, according to the International Energy Agency.
With Russian aggression in Ukraine leading to a hike in the price of gas and the subsequent energy crisis, an increased reliance has been placed on coal, outlined the agency.
The world’s coal consumption is set to reach a new high in 2022 amid the energy crisis
While the growth in coal use in Europe is set to be temporary, stronger efforts will be needed to bring down demand in the years ahead
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— International Energy Agency (@IEA) December 16, 2022
No signs of a surge in coal investments have been seen though, it reassured.
“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 IEA director of energy and security Keisuke Sadamori.
China consumes the most coal according to the IEA, followed by India with each respectively set to use 4.25bn and 1.1bn tonnes in 2022.
The European Union will consume just below 0.5bn tonnes in the same period.
Sadamori added that while coal has become a short-term solution to ensure energy supply, the development of renewables has been accelerated by the crisis.
Last week, the IEA reported that renewable output will likely surpass coal as the world’s leading source of energy by 2027, as it is increasingly seen as a key solution to ensure energy security.
The UK relies heavily on gas for energy, but has delayed the decommissioning of coal-fired power stations operated by Drax Group (LSE:DRX), Uniper and EDF in order to ensure backup supply if demand cannot be met.
Earlier this week, two of these coal units were ordered to come online by National Grid ESO amid fears demand would exceed supply, but were told to shut down soon after.