Stock Market

This year, the world will use more coal than ever before, according to the IEA.

A report from the International Energy Agency (IEA) on Friday said that the world’s use of coal will reach an all-time high in 2022 and stay about the same for the next few years if more isn’t done to move to a low-carbon economy.

After Russia invaded Ukraine and caused supply problems, gas prices went up, so some countries switched to coal, which is cheaper.


Heatwaves and droughts in some places have also increased the need for electricity and cut down on hydropower. Nuclear power has also been very weak, especially in Europe, where France had to shut down its reactors for maintenance.

Related: Fears of a recession caused oil prices to drop by more than 3%. 

The IEA’s annual report on coal predicts that the amount of coal used around the world will rise by 1.2% this year. This will be the first time that 8 billion metric tonnes of coal will be used in a single year, which was a record set in 2013.

It also says that the amount of coal used will stay the same until 2025. This is because falling demand in mature markets will be offset by strong demand in emerging Asian economies.

This means that coal will continue to be by far the largest source of carbon dioxide emissions in the world’s energy system.

India is expected to need 7% more coal, while the European Union will need 6% more and China will need 0.4% more.


The IEA’s director of energy markets and security, Keisuke Sadamori, said, “The world is close to a peak in fossil fuel use, and coal will be the first to go down, but we are not there yet.”

Europe’s need for coal has gone up because more people have switched from gas to coal because gas prices are high and Russian gas has slowed down to a trickle.

But by 2025, Europe’s demand for coal is expected to drop below what it was in 2022, the report said.

This year, coal-fired power generation is expected to reach a new high of around 10.3 terawatt hours. Coal production is also expected to reach a new high of 8.3 billion metric tonnes, up 5.4% from last year.

Next year, production is expected to reach its highest point, but by 2025, it should have dropped below what it was in 2022.


This year, China, India, and Indonesia, the three countries that make the most coal, will all set new production records. However, despite high prices and comfortable margins for coal producers, there are no signs of a rush to invest in coal projects that will help exports.

Related: TRX seems to be moving toward a partnership, but how high could it go? 

The report said this shows that investors and mining companies are worried about coal’s short- and long-term prospects.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button