IEA Signals Decline in Global Coal Demand by 2026

The International Energy Agency (IEA) predicts a landmark downturn in coal demand globally by 2026, despite a brief rise to over 8.5 billion tonnes in 2023. The “Coal 2023” report indicates unprecedented regional variances, with the EU and US facing about 20% reductions in coal use. In contrast, Asia’s appetite for coal grows, with India’s demand up by 8% and China’s by 5% in 2023, propelled by increased electricity needs and faltering hydropower.

A significant expansion in renewable energy, especially in China, which is the world’s largest consumer of coal, is expected to drive a 2.3% global demand reduction by 2026. However, coal consumption will still exceed 8 billion tonnes. Asia remains the focal point of coal demand, with China, India, and Southeast Asia poised to consume three-quarters of the global total. IEA’s Keisuke Sadamori suggests that while a shift from coal is imminent, accelerated renewable energy growth in Asia is crucial to meeting climate goals.

The International Energy Agency’s latest report forecasts a decline in global coal demand by 2026, marking a potential turning point in global energy consumption.

Source: Global coal demand is expected to drop by 2026 – but not in Asia | Electrek