2023 Global Coal Consumption Increases by 120 Million Tons
Despite Calls for Carbon Reduction, Hits Record High Again
"China Developing New Coal Mines, Consumption Expected to Rise"
Global efforts to transition to eco-friendly energy to combat global warming are going in the opposite direction. Due to increased electricity demand in China and India, global coal consumption has reached an all-time high. As coal prices are expected to decline for the time being, warnings have emerged that the pace of carbon neutrality will slow down.
According to the recent Coal Market Trends report released by Paulo Annolucci, Chief Energy Economist at the World Bank, global coal consumption last year reached 8.536 billion tons, an increase of 120 million tons (1.4%) compared to 2022, marking a record high. Although the growth rate itself has slowed from 614 million tons in 2021 and 323 million tons in 2022, the total coal consumption continues to rise.
The increase was led by China and India. China’s coal consumption last year was 4.704 billion tons, the highest in the world. It increased by 220 million tons compared to the previous year, with the growth trend steepening compared to the 198 million tons increase in 2022. India’s coal consumption also rose by 98 million tons to 1.26 billion tons. Consequently, despite significant reductions in coal consumption in the United States (-95 million tons) and the European Union (EU, -1.07 billion tons), the total volume inevitably increased, the report explained.
Global coal trade also hit a record high. World coal imports rose by 111 million tons to 1.468 billion tons. China led the increase by raising its coal imports by approximately 150 million tons, with the report analyzing this as an effect of production not keeping pace with China’s coal consumption.
Coal production remains robust. Last year, coal production reached 8.741 billion tons, an increase of 159 million tons compared to the previous year. While the United States and the European Union decreased production by 50 million tons and 70 million tons respectively, India and China increased production by 100 million tons and 50 million tons respectively, resulting in an overall increase. However, Australia, a major coal producer, saw a slight decrease in production from 443 million tons to 439 million tons due to chronic labor shortages and coal import bans imposed by China.
It is expected to remain difficult to sharply reduce global coal usage going forward, as China’s coal consumption is likely to be maintained for the time being. Economist Annolucci pointed out, “New coal mines are under development in China,” adding, “About 110 gigawatts of coal power plants were approved last year, so coal consumption within China may continue to increase.” He further predicted, “Unless there is a surge in renewable energy generation or a sharp drop in electricity demand this summer, coal demand in China’s power sector will increase again this year.”
The Paris Agreement’s goal of limiting the global average temperature rise to 1.5 degrees Celsius has become uncertain. The agreement aims to achieve carbon neutrality by 2050 to prevent global warming, with key measures including restricting coal power generation and transitioning to eco-friendly energy. To this end, developed countries must phase out all coal power plants by 2030, but new coal power plants continue to be approved in China.
International environmental groups are also raising their voices against China. Gao Weiher, Beijing Project Manager for Greenpeace East Asia, stated, “Whether China can reduce coal use in the power sector plays a crucial role in whether global coal consumption can shift to a downward trend,” urging, “China must actively cooperate with EU countries to reduce coal consumption as quickly as possible.”
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