Global coal demand set to fall: IEA

Global coal demand is expected to decline by 2026, according to the International Energy Agency's annual coal market report -Coal 2023-released on Friday.

Though global coal demand is rising by about 1.4% in 2023, IEA expects global coal demand to fall by 2.3% by 2026 compared with 2023 levels, even in the absence of governments announcing and implementing stronger clean energy and climate policies. This decline is set to be driven by the major expansion of renewable energy capacity in the three years to 2026, the IEA has projected.

The likely fall in coal demand is significant in view of the UAE Consensus agreed upon by nearly 200 countries at COP28 in Dubai on December 13. The consensus is to transition away from fossil fuels, in a just, orderly and equitable manner, and accelerate action in this critical decade to achieve net zero emissions by 2050.