[Asia Economy Reporter Jeong Hyunjin] The International Energy Agency (IEA) has forecast that global coal demand will reach an all-time high next year. This is influenced by the significant increase in coal-fired power generation this year due to the global economic recovery following COVID-19.
According to the UK Guardian on the 17th, the IEA predicted in its report that there is a high possibility of breaking the record next year. This year, global coal demand used for coal-fired power generation, cement, and steel manufacturing increased by about 6%, which is expected to be less than the previous record set in 2013-2014. However, if there is no policy intervention from governments worldwide, it is predicted that demand will surpass that level next year.
The increase in coal demand was driven by power generation. This year, global coal-fired power generation is expected to increase by about 9%, supported by economic recovery after COVID-19. Last year, coal-fired power generation decreased by about 4% due to economic contraction caused by COVID-19, but this year, the recovery in electricity demand has outpaced the growth of low-carbon power generation, leading to increased reliance on coal and other fossil fuels in several advanced countries, the IEA explained.
By major countries, coal-fired power generation in the United States and the European Union (EU), which sharply declined last year, rebounded by about 20%. However, coal-fired power generation is expected to decrease again next year. In India and China, coal-fired power generation is expected to increase by 12% and 9% respectively this year, with both countries reaching record-high levels.
Fatih Birol, Executive Director of the IEA, emphasized that without strong and immediate government measures to reduce coal use, the possibility of limiting global temperature rise to below 1.5 degrees Celsius will become slim.
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