The International Energy Agency stated that global coal demand is expected to decline by 2.3% by 2026 compared to 2023 levels, with the implementation of stronger clean energy and climate policies, noting that this decline is set to be driven by a significant expansion in The renewable energy capacity that will be operated in the three years until 2026.
This came within the framework of the interest of the Information and Decision Support Center in the Council of Ministers, to monitor And to analyze everything related to international reports that deal with Egyptian affairs or fall within the scope of its interests, as the Center highlighted the report issued by the International Energy Agency, which deals with indicators of global demand for coal amid expectations that this demand will decrease by 2026.< /p>
The report indicated that global demand for coal witnessed an increase of 1.4% in 2023, exceeding 8.5 billion tons for the first time, but this global increase hides stark differences between regions, as consumption declined sharply in most advanced economies in 2023, including record declines in the European Union and the United States by about 20% each.
He added that at the same time demand in emerging and developing economies remains very strong, as it has risen. By 8% in India and by 5% in China in 2023 due to high demand for electricity and weak hydropower production.
The report indicated that more than half of this expansion is scheduled to occur Global renewable capacity in China, which currently accounts for more than half of global coal demand. As a result, Chinese coal demand is expected to decline in 2024 and stabilize until 2026. However, China’s coal outlook will be significantly affected. In the coming years, the pace of spreading clean energy, weather conditions, and structural transformations will change.
The report stated that the expected decline in global demand for coal, which currently constitutes the largest source of energy for electricity generation, steel industry and production Cement, but it is also the largest source of carbon dioxide emissions resulting from human activity, may represent a historical turning point.
He pointed out that global consumption is expected to remain more than 8 billion tons until the year 2026, according to the market report, noting that for these emissions to decrease at a rate consistent with the goals of the Paris Agreement, the use of coal must decline relentlessly and much faster.
The Information Center explained that, according to the report, it witnessed There were declines in global coal demand several times, but they were short and resulted from unusual events – for example, the collapse of the Soviet Union and the (Covid-19) crisis – but this time it looks different, as the decline is more structural, driven by massive and sustainable expansion. For clean energy technologies.
The report indicated that in advanced economies, the expansion of renewable energy sources is expected to continue amid weak growth in demand for electricity in a way that drives a structural decline in coal consumption.
The report concluded in conclusion that global coal trade is expected to contract as demand declines in the coming years, reaching a new high level at the end of 2023, driven by strong growth in Asia.