Context: Global coal demand is expected to grow by 1% in 2024 to an all-time high of 8.77 billion tonnes (Bt). This represents a considerable slowdown in growth from previous years: global coal consumption rose by 7.7% in 2021 as it rebounded from the Covid shock the year before, by 4.7% in 2022 and by 2.4% in 2023. 

• The report presents trends and forecasts for coal demand, supply and trade by grade and by region.

Trajectory of Coal Usage

• Coal Demand: It is expected to shrink in advanced economies accompanied with growth in few emerging economies E.g. India, China, Indonesia.

• India: It is expected to see the largest increase in coal demand based on high power demand linked to economic growth.

• Coal Production: Globally, it is expected to reach an all time high in 2024 and then flatten through 2027.

• India is expected to be the largest contributor to global coal production growth. 

• Indian coal production increased by 10% (2023), exceeding 1 billion tonnes for the first time. 

• In 2024, coal production is expected to have grown by 8%.

Reasons for persistent usage of coal

• Rising demand: Linked to power, industrial growth, and infrastructure development to fulfill goals of economic growth.

• Weather-related fluctuations: Fluctuations in power generation by renewable sources like wind and solar are offset by constant, reliable and affordable coal power.

• Electrification of services previously provided by other fuels: E.g. mobility and industrial heat, and emerging industries such as data centres and AI.

• Profitability of Coal Exporters: It surged after Covid-19 and the energy crisis of 2022.

India’s Initiatives for optimization of Coal Usage

• Promotion of Renewable energy: Schemes like PM KUSUM, PM Surya Ghar Muft Bijli Yojana

• Mine Opening Permission module: It accelerates approval process for opening coal mines

• Reducing emissions from thermal power plants: Using techniques like Flue Gas Desulphurization (FGD), Electro Static Precipitator (ESP) etc.