BAKU, Azerbaijan, December 20. Coal production in the European Union saw a notable decline in 2023, with total output dropping to 278 million tons, largely driven by reduced demand for lignite, according to the latest outlook by the International Energy Agency (IEA), Trend reports.
More than 80% of the EU’s coal production is lignite, predominantly used by the power sector, with Germany and Poland accounting for 70% of the bloc's coal output. Germany remains the largest producer of lignite, contributing 102 million tons, while Poland produces significant amounts of steam and metallurgical coal.
However, the power sector's demand for lignite has been weakening. In 2023, lignite production declined in line with reduced lignite-fired power generation, particularly in Germany, which experienced the steepest drop, down 29 million tons. Poland also saw declines in both lignite and steam coal production due to reduced demand and the high cost of steam coal relative to imports. Czechia and Bulgaria followed suit with notable reductions as well.
Looking ahead to 2024, the IEA projects further declines in coal production across the EU, estimating a reduction of 35 million tons, or 13%. Germany’s fast-paced coal phase-out and increased electricity generation from renewables are expected to be the main factors behind this decline, while Poland faces challenges with rising costs in its deeper hard coal mines.
The agency's forecast through 2027 indicates continued reductions in coal production, with the EU’s total output potentially falling to 190 million tons by 2027, driven primarily by a further drop in lignite production in Germany. Other countries such as Poland, Bulgaria, and Czechia are also expected to see slower, more gradual declines.