Coal consumption at record levels: IEA predicts trend reversal from 2023

Coal consumption at record levels: IEA predicts trend reversal from 2023

According to a report by www.tagesschau.de,

The International Energy Agency (IEA) estimates that coal consumption will be at an all-time high in 2023. This increase is mainly due to increasing demand in emerging markets. However, the IEA experts assume that the peak has been reached and coal consumption will decline in the near future.

Globally, more coal was consumed in 2023 than ever before, with total consumption reaching 8.5 billion tons, an increase of 1.4 percent compared to the previous year. This peak is primarily due to demand in emerging markets.

The IEA is now forecasting a decline in coal consumption for the first time. By 2026, the decline is expected to be 2.3 percent compared to 2023, which is primarily due to the increasing spread of renewable energy sources such as wind and solar. This forecast is driven by structural changes and the transition to clean energy technologies.

Europe and the US are already seeing a significant decline in coal consumption, driven by weaker industrial activity and increased use of renewable energy. However, in other regions such as China, India and Southeast Asia, coal consumption continues to rise, driven by electricity generation and the production of raw materials such as nickel for electric car batteries.

Although the IEA predicts a decline in coal consumption, it still expects consumption to exceed eight billion tons per year up to and including 2026. This is well above the goals of the Paris Climate Agreement, meaning that coal consumption would have to fall more quickly to meet the agreed climate targets.

These developments show that the global fossil fuel market is changing and a transition to clean energy technologies is taking place. This change will have both economic and political impacts on the financial sector, as investments and business models will have to adapt to changing market conditions. It is important that financial professionals closely monitor these developments and develop strategies for the future.