BAKU, Azerbaijan, December 19. Global coal demand surged to a record 8,687 million tonnes (Mt) in 2023, marking a 2.5% year-on-year increase, according to the International Energy Agency (IEA), Trend reports.
The rise was fueled by increased consumption in coal-dependent nations like China and India, coupled with low hydropower output that drove coal use in power generation to 5,855 Mt—a 2.5% jump.
Non-power coal use also grew, climbing 2.3% to 2,833 Mt. China, the world’s largest coal consumer, accounted for over 56% of global demand in 2023, with a 6% increase in consumption to 4,883 Mt. The power sector dominated China’s coal usage, representing 63% of its total demand. Meanwhile, India’s coal consumption rose sharply by 10% to 1,245 Mt, solidifying its position as the second-largest coal consumer.
The IEA projects that global coal demand will rise by another 1.0% in 2024, reaching an all-time high of 8,771 Mt. This growth will primarily come from Asia, where China, India, and ASEAN countries are expected to consume three-quarters of the world’s coal—a dramatic increase from around 35% in 2000. The largest consumption hikes in 2024 are forecast in India (up 70 Mt, or 6%) and China (up 56 Mt, or 1.1%), along with increases in countries like Indonesia and Vietnam.
Conversely, significant declines in coal demand are anticipated in the European Union (down 42 Mt, or 12%) and the United States (down 18 Mt, or 5%), driven by shifts in the electricity generation sector. The outlook for Russia, the fourth-largest coal consumer, remains uncertain due to the ongoing war in Ukraine, which also clouds Ukraine’s coal forecast.
Looking ahead to 2027, global coal demand is expected to plateau, with growth in India and ASEAN nations offsetting declines in Europe and the United States. While renewables are rapidly expanding, strong electricity demand is likely to keep coal-fired power generation at levels similar to 2024. China will remain the linchpin of global coal consumption trends, maintaining its critical role in the energy landscape.