Global Coal Consumption Peaks with China at the Forefront

Record High Global Coal Consumption

In 2023, despite the ongoing shift away from fossil fuels in many countries, the global consumption of coal reached an all-time high of 164 exajoules (EJ). To shed light on the role of coal in the global energy mix and identify the regions with high coal consumption, Alan Kennedy from Visual Capitalist collaborated with Range ETFs.

Coal's Contribution to Global Energy

Coal plays a significant part in the global energy mix, providing 26% of the world's energy in 2023. This contribution surpasses the combined energy provided by all non-fossil fuel sources. The only energy source that had a higher contribution was oil. Here is a breakdown of coal consumption by region: Please note that percentages may not add up to 100 due to rounding. *Commonwealth of Independent States

Decline and Rise in Coal Consumption

While coal consumption has seen a decline in numerous regions, it has remained relatively steady globally over the past decade. For instance, North America and Europe both saw a 16% reduction in their coal energy consumption in 2023. However, the Asia Pacific region's heavy reliance on coal has kept global coal consumption almost unchanged. In 2023, China's coal consumption rose from 88 EJ to nearly 92 EJ, accounting for 56% of global coal consumption. This significant increase resulted in the Asia Pacific region leading the world in coal consumption, with a staggering 83%.

The Significance of Coal

The availability of existing infrastructure and affordable prices have not only maintained global coal consumption over the past decade but have also created potential for growth. Many developing nations are now increasing their coal consumption, opening up potential opportunities in the coal market. According to the Statistical Review of World Energy 2024, Bangladesh and Colombia witnessed double-digit percentage increases in their year-over-year coal consumption between 2022 and 2023, at 41% and 53% respectively. Coal continues to play a crucial role in the global energy mix, particularly in the developing world, where its cost-effectiveness makes it the preferred energy source.

Bottom Line

While many countries are making strides towards renewable energy sources, coal remains a significant player in the global energy mix. The reliance on coal, especially in developing nations and regions like the Asia Pacific, underscores the challenges in completely transitioning away from fossil fuels. What are your thoughts on this global reliance on coal? Do you think the shift towards renewable energy sources will accelerate in the coming years? Share your thoughts and this article with your friends. Remember, you can sign up for the Daily Briefing, which is every day at 6pm.