ASIATODAY.ID, JAKARTA – The International Energy Agency (IEA) estimates that global coal consumption will reach a record high in 2023 as demand in developing countries remains strong.
Quoting Reuters, Friday, December 15 2023, the IEA said coal demand is expected to rise 1.4% in 2023, the first time it has exceeded 8.5 billion tonnes. This is because usage in India increased by 8% and China increased by 5% due to rising electricity consumption and a weak decline in hydroelectric power production.
On the other hand, coal use in the European Union and the United States is each expected to decline by 20% in 2023.
Amid massive expansion in renewable energy capacity in the next three years, coal use is not expected to decline until 2026.
Meanwhile, renewable energy is estimated to help reduce coal use by 2.3%, even without stronger clean energy policies. However, in 2026, global consumption is projected to remain well above 8 metric tons.
According to the report, if the goals set out in the Paris Agreement are to be achieved, sustainable coal use must be reduced significantly more quickly.
China is expected to account for more than half of global renewable energy expansion in the next three years. This causes coal demand in the country to fall in 2024 and be flat until 2026.
Then, half of the world’s coal use comes from China. This could mean that the outlook for coal use will be significantly impacted in the coming years by the pace of adoption of green energy, weather conditions and structural changes in China’s economy.
This year, China, India and Southeast Asia are expected to account for three-quarters of global coal consumption, up from a quarter in 1990. Consumption in Southeast Asia is expected to surpass the US and EU in 2023.
Until 2026, India and Southeast Asia are the only regions where coal consumption is expected to grow significantly. (ATN)
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