Worldwide spending on coal projects is expected to soar 10% in 2022 as economies search for alternatives with Russia’s invasion of Ukraine ongoing.
Around £93bn will be invested in coal supply chains this year, the International Energy Agency (IEA) said, up from approximately £85bn in 2021, which was itself 10% above the previous year.
China and India led the investments, while Germany also announced Sunday it would restart coal-fired power plants to conserve natural gas. The UK is also increasing its reliance on coal.
“In some markets, energy security concerns and high prices are prompting higher investment in fossil fuel supplies, most notably on coal,” Fatih Birol, IEA executive director, commented.
It comes despite global commitments made in the latter parts of 2021 to “phase down” coal due to its carbon emissions.
Birol asked for a “massive surge in investment to accelerate clean energy”, insisting both energy shortages and global warming can be dealt with “at the same time.”
The problem began around a year ago when nations eased pandemic restrictions as there was an international undersupply of natural gas.
Demand exceeded supply – pushing gas prices higher – and was then exacerbated by Russia’s war on Ukraine.
Putin’s state was one of the largest suppliers of oil, coal and gas before much of the West issued import bans on their non-renewables.