BAKU, Azerbaijan, March 26. Global coal demand saw a modest growth of 1.1% in 2024, rising by approximately 67 million tons of coal equivalent (Mtce), or 123 million tons in physical terms, Trend reports.
According to the latest report prepared by the International Energy Agency (IEA), this marks a continuation of the declining growth rate since the post-pandemic surge in 2021.
The electricity sector remains the largest driver of coal consumption, accounting for two-thirds of global coal use. In 2024, global coal power generation rose by nearly 1%, reaching a new high of 10,700 terawatt-hours (TWh). A key factor behind this increase was record-high temperatures, which heightened electricity demand for cooling, particularly during intense heatwaves in China and India. The impact of these higher temperatures is estimated to account for the entire annual increase in coal demand for the year.
Despite being the world’s largest source of power generation, coal’s share of the global electricity mix is steadily declining, now at 35%. This marks the lowest share since the IEA was founded in 1974.
Consumption of metallurgical coal fell by 0.5% in 2024, largely due to a decrease in global steel production. However, coal demand for non-power uses saw slight growth, driven by coal-intensive sectors such as nickel mining in Indonesia and chemical production in China.
