Mineral-energy-international.com, Global coal consumption is projected to remain steady through 2025, driven by rising electricity demand that surpasses the growth in renewable energy sources like solar and wind, according to the International Energy Agency (IEA). Despite significant expansion in renewables, coal remains crucial, especially in China and India, where extreme weather and economic growth contribute to higher energy needs.
Coal use in Europe and the U.S. continues to decline due to emissions reduction efforts, but global demand stays strong due to slower energy transitions in Asia. Coal production is stabilizing in developed economies, while developing countries like India are ramping up production to meet domestic demand.
China, the world’s largest coal consumer, is seeing a slow recovery in hydropower, which has softened coal use growth, but high electricity demand prevents a major drop in coal consumption. India’s coal consumption surged earlier in 2023 due to extreme heat and low hydropower output but is expected to slow down in the year’s second half as conditions normalize.
Global coal trade remains robust despite reduced demand in Europe and Northeast Asia. Countries like Vietnam are stepping up coal imports, and major exporters like Colombia and South Africa have increased their output, while Russia faces tighter sanctions. Coal prices have stabilized, but remain elevated due to inflationary pressures and supply chain disruptions.