• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 20 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 14 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours Uniper is over - Germany (Government) buys the Company
  • 20 hours The Federal Reserve and Money...Aspects which are not widely known
  • 14 hours "How BlackRock Conquered the World" by James Corbett (all 3 parts)
  • 20 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 13 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 7 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 14 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
Coal Is Staging A Major Comeback

Coal Is Staging A Major Comeback

The “dirtiest fossil fuel” is…

Could Nuclear Power Help Poland Kick Coal?

Could Nuclear Power Help Poland Kick Coal?

Pennsylvania-based nuclear giant Westinghouse is…

The EU Ban On Russian Coal Goes Into Effect At Midnight

The EU Ban On Russian Coal Goes Into Effect At Midnight

The European Union’s embargo on…

City A.M

City A.M

CityAM.com is the online presence of City A.M., London's first free daily business newspaper. Both platforms cover financial and business news as well as sport and…

More Info

Premium Content

Coal Use Is Reaching Record Levels In India And China

  • The IEA is calling on China and India to put their climate pledges into action.
  • The agency argues that there is a disconnect between the commitments made by both countries, and their continued reliance on coal energy.
  • Global power generation from coal is expected to jump by nine percent in 2021 to a new high.

The International Energy Agency has called on China and India to reduce coal power generation and put their climate pledges into action, describing both countries as “holding the key to future coal demand”. The world’s two largest coal producers – with economies that account for nearly three billion people combined – are currently responsible for two-thirds of coal demand: the dirtiest form of energy.

Both countries were heavily criticised last month for watering down coal pledges at the COP26 climate summit, altering the phrasing of agreed plans to cut coal consumption from “phase out” to “phase down” over the next two decades.

The energy agency argues there is a disconnect between the commitments made by both countries, and their continued reliance on coal energy.

Keisuke Sadamori, director of energy markets and security, said: “The pledges to reach net zero emissions made by many countries, including China and India, should have very strong implications for coal – but these are not yet visible in our near-term forecast, reflecting the major gap between ambitions and action.”

Sadamori’s urgent criticism accompanied the IEA’s latest annual coal report, which gloomily revealed that coal power generation has soared to worldwide record levels this year.

Related: Russia Puts The Blame On Europe As Energy Crisis Worsens

After falling over the past two calendar years amid a global push towards renewables and the volatility of the pandemic, global power generation from coal is expected to jump by nine percent in 2021 to a new peak of 10,350 terawatt-hours.

The rebound is being driven by this year’s rapid economic recovery in developed G20 nations, which has pushed up electricity demand much faster than low-carbon supplies can keep up with.

Steep hikes in natural gas prices have also increased demand for coal power by making it more cost-competitive.  

Overall coal demand worldwide, including uses beyond power generation such as cement and steel production, is also forecast to grow by six percent in 2021.

That increase will not take it above the record levels it reached in 2013 and 2014, but weather patterns and economic growth could boost coal demand to new peaks as soon as 2022 and remain at that level for the following two years.

The IEA is once again pushing for government interventions, to limit global temperature rises to 1.5 degrees or less this century.

Executive director Fatih Birol said: “Coal is the single largest source of global carbon emissions, and this year’s historically high level of coal power generation is a worrying sign of how far off track the world is in its efforts to put emissions into decline towards net zero.”

More than half of global coal-fired electricity generation takes place in China, where coal power is expected to grow by nine percent in 2021 despite a deceleration at the end of the year.

In India, it is forecast to grow by 12 percent.

This would set new all-time highs in both countries, even as they begin to ramp up solar and wind production.

While coal power generation is set to increase by almost 20 percent this year in the United States and the European Union, this would not be enough to take it above 2019 levels.

Coal use in those two markets is still expected to decline next year amid slow electricity demand growth and rapid expansion of renewable power.

China and India have so far committed to reaching net zero carbon emissions by 2060 and 2070 respectively.

By City AM

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Clockwork Orange on December 18 2021 said:
    What a ridiculous comment by IEA. Both those countries could have easily lied and committed to some unrealistic deadline for net zero. Instead they were honest, refused to commit to phase out, and were criticized then. Now they are being criticized again for being honest about their intentions. Meanwhile the EU is seeing higher coal growth than both China and India. The West doesn&#039;t know what it wants, it just knows it should keep blaming other people for problems that they created.
  • Mamdouh Salameh on December 18 2021 said:
    While pledges to climate change are a moral duty for nations of the world, the economic needs of the populations of China (1.447 billion) and India (1.40 billion) accounting for 36% of the world’s population come first and will trump pledges anytime.

    Therefore, it is very rich for the International Energy Agency (IEA) to call on China and India to reduce coal power generation and put their climate pledges into action. After all it was the hasty and irrational policies of the European Union (EU) to accelerate energy transition fully endorsed by the IEA that led to the energy crisis and caused prices of natural gas to soar to levels which made them unaffordable and also caused a shift from gas to coal.

    Moreover, was it not the IEA which came up with the ludicrous net-zero 2050 roadmap calling for an immediate stop in investments in new oil and gas exploration and production and then reversed its stand and called on OPEC+ to raise its oil production in support of President Biden’s call on them to do so?

    What muddled and contradictory policies does the IEA lead? It singlehandedly put the cause of net-zero emissions few years back. Therefore, it has forfeited any right to tell China and India to stick to their climate change.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • DoRight Deikins on December 19 2021 said:
    « Keisuke Sadamori, director of energy markets and security, said: “The pledges to reach net zero emissions made by many countries, including China and India, should have very strong implications for coal – but these are not yet visible in our near-term forecast, reflecting the major gap between ambitions and action.” »

    Or perhaps reflecting the major gap between political blather and reality?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News