Global Coal Market Outlook

Global Coal Market Outlook

News: The International Energy Agency (IEA) projects a substantial decline in global coal demand by 2026.

Key Findings:

Global Coal Demand Trend
• Record-high global coal demand in 2022, rising by 4% to 8.42 billion tonnes (Bt). In Asia, led by China, India, and Indonesia, remains the primary driver of demand growth.
• Notable demand declines in the United States, with Europe showing restrained growth.

Decline in Coal Demand and Reasons
• It is expected to decline in most advanced economies’ coal demand in 2023. Global coal consumption projected to be 2.3% lower in 2026 than in 2023.
• Factors such as shift towards renewable energy contributing to the decline in coal demand, changes in global climate affecting hydropower output and significant growth in low-cost solar photovoltaic deployment.

Climate Targets and Coal Use
• Efforts to reduce unabated coal use crucial for meeting international climate targets. Goal of nearly 95% reduction in coal emissions between 2020-2050, aligning with COP28 commitments.

Coal Prices and Industry Dynamics
• Unexpected surge in coal prices impacting consumers and industry. Mining companies maintaining strong profit margins despite rising costs.
• Diversified mining firms strategically reinvesting coal profits in anticipation of energy transition demand.

About IEA
• The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organization established in 1974.
• It provides policy recommendations, analysis, and data on the entire global energy sector. The IEA’s mission is guided by four main areas of focus: energy security, economic development, environmental awareness, and engagement worldwide.

Important reports released by IEA:
• World Energy Outlook, Global Energy & CO2 Status Report, World Energy Statistics and World Energy Balances, Energy Technology Perspective.