Global coal consumption grew by 3.3% to a record-setting 8.3 billion tons (bt) in 2022 with levels expected to increase once again in 2023.

In a new report released by the International Energy Agency (IEA) July 27, entitled “Coal Market Update,” the global demand for coal increased due to the commodity being relatively cheaper and more readily available than gas in certain parts of the world.

Coal demand in China grew by 4.6% in 2022 to a new all-time high of 4.519 bt, beating estimations recorded in the IEA's 2022 Coal Report.

Demand in India grew by more than 8% to 1.155 bt fueled by the country’s economic growth in 2022, making it the only nation besides China to surpass the 1.1 bt mark.

The EU only experienced a slight demand increase of 0.9% in 2022, topping out at 488 million tons (mt). However, the IEA, an intergovernmental organization that provides data and analyses of the entire global energy sector, expects the EU’s full-year coal demand to fall by 17% in 2023.

Demand in the U.S. fell by 7% to 457 mt during 2022 because of weak electricity needs coupled with a growing renewable energy sector. The IEA predicted that demand in the U.S. would fall by 24% during the first half of 2023 and drop to 357 mt for the full year.

The IEA expects coal demand to grow by 1.5% to 4.665 bt during the first half of 2023. Overall, global demand is projected to grow by 0.4% this year to reach a new record-high of 8.388 bt.

“Coal is the largest single source of carbon emissions from the energy sector, and in Europe and the United States, the growth of clean energy has put coal use into structural decline,” said IEA director of Energy Markets and Security Keisuke Sadamori. “But demand remains stubbornly high in Asia, even as many of those economies have significantly ramped up renewable energy sources. We need greater policy efforts and investments — backed by stronger international cooperation — to drive a massive surge in clean energy and energy efficiency to reduce coal demand in economies where energy needs are growing fast.”