Coal consumption around the world

Coal still plays an essential role in the global economy, mainly in electricity production as well as the steel industry. This consumption tends to decrease more and more due to the fact that coal is considered one of the most polluting energy sources. Many regions of the world are seeking to reduce their dependence on coal or limit their coal consumption.

Importance of coal in the global economy

Coal has long been a pillar of the global economy, fueling industrial and economic growth since the Industrial Revolution. Its importance lies mainly in its major contribution to electricity production and the steel industry. Coal turnover varies from year to year and is estimated at several hundred billion dollars per year. In 2022, global coal consumption is estimated at 8.096 billion tonnes.

With the transition to cleaner and more sustainable energy sources, the relative share of coal in the global economy tends to decline. In 2021, for example, the share of coal in global electricity production was around 10,000 TWh (terawatt hours) or 10 billion megawatt hours (MWh) while in 2022, the net electricity production from coal barely reached 455 TWh globally. This decline is justified by the growth of renewable energies and efforts to reduce carbon emissions because the consumption of coal has significant environmental implications, approximately 41% of global CO2 emissions are due to coal alone.

The main coal consuming countries

Among the largest consumers of coal are:

China in the lead, plays a major role in the global figures by representing more than half of global coal consumption, around 53%. According to the International Energy Agency (IEA), China's coal consumption for electricity generation is expected to decline in the coming years, but this will depend on various factors such as weather conditions and energy policies.

India covers second place with 11.8% of global consumption.

The United States, which also represents a major player, consumes around 7.2% globally.

Japan is at 3.1% of global coal consumed in 2022.

South Africa accounted for 2.4% of global consumption in 2022.

Russia consumed 2.3% of the world's coal between 2021 and 2022.

South Korea finds itself at 2.2% coal consumption in 2022.

Indonesia has maintained its position with 2.2% of global consumption since 2021.

Germany is at 1.5% of global coal consumed in 2023.

Vietnam accounted for 1.3% of global coal consumption in 2023.

These highly industrialized countries have long used coal for the development of their industries and railway networks. But currently, the latter are tending to reduce their coal consumption in favor of cleaner energy sources. This transition is driven by environmental concerns, including climate change, as well as government policies aimed at reducing greenhouse gas emissions.

However, certain economic, political and infrastructural factors justify the still high consumption of coal in certain parts of the world.

Factors influencing coal demand

These factors are economic, political and infrastructural. These include tensions over gas supplies following Russia's invasion of Ukraine, where gas supplies have been greatly disrupted. This has led to an increase in demand for coal, particularly in Europe. High gas prices have prompted increased reliance on coal-fired power plants. We also note heat waves and droughts, as is the case in certain regions of the world, heat waves and droughts have increased the demand for electricity. To compensate for the drop in hydroelectric production, coal-fired power stations have recently been called upon. There is also the fall in nuclear production, particularly in Europe. This decline also contributed to the increased demand for coal for electricity generation.

Furthermore, economic growth also counts as a factor that increases coal consumption. The economic recovery after the confinements linked to the Covid-19 pandemic has stimulated demand for coal, particularly in China and India. These countries are experiencing rapid economic growth and intensive industrialization which require a large amount of energy and coal remains a very abundant and relatively cheap source of energy to meet these needs.

Also, although global demand for coal in the steel industry has declined, it remains significant. The steel industry remains one of the main coal-consuming sectors.