In recent times, global energy discussions and policies have been all about the need to clean up our energy systems as we aim for net-zero emissions. This implied that phasing out coal-fired power plants is necessary to avoid the worst climate change scenarios. Yet rather than fade away, coal experienced a growth surge due to disruptions related to the Ukraine war. Due to the war, there were shortfalls of a different power source, natural gas, and governments shifted back to coal to “keep the lights on”.
Which countries are most reliant on coal?
Coal is by far the biggest source of electricity in the world. Old-school fossil fuels make up more than 80% of the world’s primary energy use – and coal, the world’s most affordable energy fuel, is also the largest source of energy-related CO2 emissions.
Global usage had started to fall after 2018, but it rose again in 2021 and reached an all-time high in 2022, surpassing 8 billion metric tons for the first time. The International Energy Agency expects demand to remain at that level at least through 2025.
The chart below uses data from the Statistical Review of World Energy to give an idea of how much various countries rely on fossil fuels, especially coal.
Coal’s importance in emerging economies
Coal is the largest source of electricity generation and the primary fuel for iron, steel, and cement production, making it central to climate and energy discussions.
The fossil fuel continues to be an affordable and abundant source of energy, particularly in emerging economies where demand is expanding rapidly.
South Africa is the world’s most coal-dependent nation featured in the statistical review, with coal accounting for 69% of its primary energy consumption in 2022.
In 2022, global consumption of coal surpassed 8 billion tonnes in a single year for the first time, with China and India being the two biggest consumers in absolute terms.
China’s power sector alone accounts for one-third of global coal consumption. Meanwhile, with a growth rate of 6% annually, India has doubled its coal consumption since 2007—and is expected to lead the growth in coal consumption for years to come.
Coal demand in developed countries
U.S. consumption of coal has dropped almost 50% compared to the early 2010s.
With initiatives like the Inflation Reduction Act (IRA), which includes nearly $370 billion to accelerate the U.S.’s energy transition, coal consumption is expected to remain on a downward trajectory in the United States.
The same downward movement can be seen in the European Union.
France, for example, only has 2.5% of its primary energy consumption coming from coal, a share that is just half of what it was in the early 2000s.
In Germany, Europe’s biggest economy, coal still accounts for 18.9% of total energy consumption (a small increase over 2021, due to the energy crisis). However, a decade ago in 2012, that number stood even higher at 24.9% of primary energy use.
With coal consumption falling in developed nations, but remaining steady in emerging economies, the International Energy Agency projects that coal demand will plateau at 2022 levels until 2025 when it will begin to fall.
Source: Visual Capitalist
