Global Coal Demand Remains Strong, On Track For Record High

Jul 06, 2022

The Financial Associated Press reported on July 4 that the conflict between Russia and Ukraine and the sanctions imposed by Western countries have exacerbated the shortage of oil and natural gas. Under the difficult situation, many countries have begun to increase the use of coal. From the U.S. to Europe to developing countries, coal purchases are increasing to ensure adequate power supplies.


In fact, in order to reduce carbon dioxide emissions, many European countries have pledged to phase out coal energy as soon as possible. The EU has committed to reducing carbon dioxide emissions by at least 55% by 2030. According to information provided by the EU, Italy has pledged to phase out coal by 2025, the Netherlands has pledged to phase out coal by 2030, and Germany has also pledged to phase out coal energy by 2038. This return to coal clearly contradicts previous commitments.


Record Price


Parts of the U.S. are increasing their use of coal, and this summer's unusually high temperatures have led to a surge in demand for electricity that has even pushed regional power grids to the brink of collapse.


India is also heavily dependent on coal. Rahul Tongia, a senior fellow at the Centre for Social and Economic Progress, a think tank in New Delhi, said India's coal-fired power generation hit a record in April.


In fact, as investment in the coal industry has been declining over the years and power plants across Asia and Europe are rushing to acquire more coal, coal is now "in demand", with spot coal prices at the Port of Newcastle, Australia, in the last month. It reached a record $402.50 per ton.


The International Energy Agency (IEA) forecasts that global coal demand will remain strong and is expected to hit a record high this year, driven by rapid growth in energy demand.


However, this is gradually moving away from the carbon peak target plan. It is a serious setback in social development. New energy construction such as wind energy and solar energy should be placed more attention and hope