Global coal demand reached a record level in 2024 but is expected to stabilize until 2027 due to the rise of renewable energy, according to a report from the International Energy Agency (IEA) published on Wednesday.
After reaching “a record level” in 2024, at 8.77 billion tons, “global coal demand is expected to stabilize in the coming years” due to the strong growth of renewable energy, the IEA states in its annual report on coal worldwide, covering the period 2024-2027.
Global coal trade is also expected to reach a record level in 2024, with 1.55 billion tons, while prices remain today 50% higher than the average observed between 2017 and 2019.
Coal demand continues to increase in certain emerging economies, where electricity demand is rising sharply alongside economic and demographic growth, such as India, Indonesia, and Vietnam, the IEA further emphasizes.
According to the report, “Asia remains the center of international coal trade, with all the largest importing countries in the region, including China, India, Japan, Korea, and Vietnam, while the largest exporters are Indonesia and Australia.”
In contrast, in most advanced economies, coal demand has already peaked and is expected to continue to decline until 2027, notes the IEA.
“The rapid deployment of clean energy technologies is transforming the global electricity sector, which accounts for two-thirds of global coal consumption,” explains Keisuke Sadamori, director of energy markets and security at the IEA, quoted in a statement from the Agency.
“However, weather factors will have a major impact on short-term coal demand trends,” he warns.
He further specifies that “the speed at which electricity demand will also increase will be very important in the medium term.”