While many countries around the globe pledge to transition away from fossil fuels to renewable alternatives, the use of coal for power generation has once again risen. Several governments have committed to cutting coal production and use over the coming decades, due to its reputation as the “dirtiest fossil fuel”. Coal is being increasingly replaced with less-polluting fossil fuels, such as natural gas, as countries gradually expand their renewable energy sectors to transition towards green energy. However, it seems that despite big promises and heavy investment in alternative energy sources, coal use remains high.
Global coal use rose to a record high in 2024, which will likely have a negative impact on global warming. For several years, governments worldwide have been introducing policies aimed at reducing coal use to help tackle climate change. While the contribution of coal for electricity production fell as the global renewable energy capacity increased, the overall increase in power demand led to more coal being used for power last year, according to the recently published annual State of Climate Action report.
In 2024, global coal demand rose by 1.5 percent compared to 2023, to reach an all-time high of 8.79 billion tonnes. The increase was driven mainly by emerging economies in Asia, particularly China and India. China’s demand rose by 82 million tonnes (Mt), or 1.7 percent, while India’s use grew by 45 Mt, or 4 percent. Indonesia and Vietnam also experienced a rise in coal demand. Meanwhile, the European Union saw a decrease in coal use by 40 Mt, or 11 percent, while the United States saw a 14 Mt, or 4 percent, reduction, as many coal plants were retired and renewable energy capacity grew.
As countries in Europe and North America decrease their dependence on coal, other regions, principally Asia, are expected to continue relying heavily on coal for years to come. China, India, and the Association of Southeast Asian Nations (ASEAN) countries contributed around 77 percent of the 2024 global coal demand.
Coal-fired power generation, the principal driver of global coal demand, also reached a record high in 2024, at around 10,766 TWh. Meanwhile, the use of coal in iron and steel production remained fairly stable. China has a significant impact on the world’s coal consumption, using around 30 percent more of the fossil fuel than the rest of the world combined. Much of its coal is used to power its expansive manufacturing industry.
The report suggested that while many governments are making a clear effort to decrease their reliance on coal, in favour of renewable alternatives, the world is not transitioning at a fast enough rate to meet international greenhouse gas reduction targets by the mid-century.
“There’s no doubt that we are largely doing the right things. We are just not moving fast enough. One of the most concerning findings from our assessment is that for the fifth report in our series in a row, efforts to phase out coal are well off track,” said Clea Schumer, a research associate at the World Resources Institute thinktank. “The trouble is that a power system that relies on fossil fuels has huge cascading and knock-on effects… The message on this is crystal clear. We simply will not limit warming to 1.5°C if coal use keeps breaking records,” explained Schumer.
At the COP26 climate summit in 2021, governments agreed to “phase down” the use of coal as part of the “Glasgow climate pact”. Despite changing the language last minute, from a “phase-out: to a “phase-down”, government representatives at the conference made a clear commitment to reduce their reliance on coal. While many environmentalists were disappointed by the decision to water down the language, most thought it signalled the end of the coal era.
At the time, the executive director of the International Energy Agency, Fatih Birol, said that over 40 percent of the world’s existing 8,500 coal plants would need to close by the end of the decade, and no new ones could be built, to stay within the global heating limit of 1.5°C. Birol stated, “I would very much hope that advanced economies take a leading role and become an example for the emerging world. If they don’t do it, if they don’t show an example for the emerging world, they shouldn’t expect the emerging world to do it.”
However, the view of coal use varies significantly from country to country. Despite its commitment to reducing greenhouse gas emissions over the coming decades, India sees coal as a major contributor to the industrial expansion needed to support the country’s economic growth. India’s prime minister, Narendra Modi, celebrated surpassing 1 billion tonnes of coal production earlier this year. Meanwhile, United States President Donald Trump has backtracked on the Biden administration’s climate efforts, instead declaring his support for coal and other fossil fuels this year.
The failure to reduce coal consumption at the rate needed to meet international climate pledges demonstrates the need to reinforce the commitment to phasing down coal use in the upcoming COP30 UN climate summit in Brazil. In addition, greater efforts must be taken to support emerging economies in transitioning to green without compromising economic growth reliant on the use of fossil fuels. By Felicity Bradstock for Oilprice.com
