The report notes that the increase in coal consumption, especially in China and India, is primarily due to the rapid expansion of electricity generation. The burning of coal to produce electricity or the energy industry releases a large amount of CO2 into the atmosphere, which is responsible for warming the temperature of the planet.
The IEA notes that China alone accounts for more than half of global consumption. And “significant annual growth in China’s electricity demand, projected at 6.5% in 2024, weakens the likelihood of a decline in the country’s coal consumption.”
In India, this consumption “rose sharply” in the first half “due to low hydropower generation and massive increases in electricity demand due to extreme heat waves and strong economic growth”. The IEA adds that this growth in Indian demand is “expected to slow in the second half of the year as weather conditions return to seasonal averages”.
Sharp decline in Europe
By contrast, coal-fired electricity generation in Europe is falling sharply, falling by more than 25% in 2023 and according to the IEA, “and is expected to decline by almost the same amount again this year.” U.S. coal use has also “declined significantly,” but stronger electricity demand and less transition to gas “threatens to slow this trend in 2024,” the report warned.
“Our analysis shows that global coal demand is expected to remain stable through 2025 based on current policy settings and market trends,” said Keisuke Sadamori, IEA’s Director of Markets and Energy Security.