(Bloomberg) -- The world's coal demand is expected to remain at all-time highs this year as increased industrial use offsets a fall in power generation.
Coal consumption rose by 3.3% to a record 8.3 billion tons in 2022 and will stay at those levels this year as demand in Asia stays robust, according to a report by the International Energy Agency. China, India and Southeast Asian countries combined will account for three-quarters of the coal consumed globally in 2023.
“Demand remains stubbornly high in Asia, even as many of those economies have significantly ramped up renewable energy sources,” Keisuke Sadamori, the IEA's director of energy markets and security, said in an emailed statement.
The report highlights the global imbalance of the energy transition, as industrializing countries hold on to polluting forms of production. It's a stark reminder that despite an acceleration of clean energy in Europe and North America, much of the world's power and industrial sectors remain deeply bound to fossil fuels.
Read More: Europe's Unused Coal Heads to New Shores in Post-Crisis Glut
Coal use in Europe is set to fall sharply this year as the continent now deals with stagnant power demand from industry, and after a rush for coal in the face of gas-supply risks last year left the continent with a glut of the fuel — some of which has been re-exported to Asia. Lower natural gas prices in the US are also encouraging a move away from coal, the IEA's report said.
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