As per the report of the International Energy Agency (IEA) titled Coal 2021 Analysis and forecast to 2024, overall global coal demand is expected to grow by 6 percent in 2021 with coal consumption to 7,906 million tonnes (Mt) and is set to rise to 8,025 Mt in 2022, the highest level ever.
- The global coal power generation is expected to increase by 9 percent in 2021 to 10,350 terawatt-hours (TWh).
- CO2 emissions from coal in 2024 are expected to be well over 3 gigatonnes higher than in the Net Zero Emissions by 2050 Scenario.
- As per the report, Global coal consumption and production are not on the trajectory of the ‘Net-Zero by 2050’ pathway by 2024.
Note – China is the world’s largest consumer, producer and Importer of coal followed by India being the 2nd largest producer, consumer and importer.
Key Points of the Report:
i.Due to Covid-19 total coal consumption declined 4.4 percent in 2020, to 7,456 Mt and the Coal use for power production also dropped by 4.2 percent.
- Coal consumption increase in 2021 is from three countries viz China, India, and the United States.
- The overall continued increase assumes that global GDP rises at a compound average annual growth rate (CAAGR) of 4 percent from 2022 to 2024.
ii.According to IEA, coal power generation is set to increase by almost 20 percent in 2021 in the United States and the European Union (but that would not be enough to take it above 2019 levels).
- Coal’s share of the global power mix in 2021 is expected to be 36 percent.
iii.In 2020, China’s share in global coal consumption increased to 53 percent. As China and India (12 percent) together account for roughly two-thirds of world coal use.
- In 2020 the Coal demand dropped by 8 percent in India and it has consumed 931 Mt of coal.
iv.Coal Price: The coal price has fallen to US$ 50 per tonne in the second quarter (Q2) of 2020 and the price further increased in 2021 due to increased demand and coal prices reached all-time highs in October 2021.
v.2021-2024: The report estimates coal-fired power generation during 2021-2024 to increase 4.1 percent in China, 11 percent in India and 12 percent in Southeast Asia.
- India’s growing demand for coal is set to add 130 Mt to coal demand between 2021 and 2024.
vi.As per the latest Production Gap Report published by the United Nations Environment Programme (UNEP) in October 2021, the production plans and projections by governments would lead to around 240 percent more coal than global levels consistent, with limiting warming to 1.5°C.
Recent Related News:
According to the ‘Hydropower Special Market Report – Analysis and forecast to 2030’ released by International Energy Agency (IEA) – India is expected to add 26 GW (or 26,000 MW) of Hydropower projects by 2030.
About International Energy Agency (IEA):
Establishment – 1974
Headquarters – Paris, France
Executive Director – Fatih Birol
