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<\/a><\/p>\nIn 2021, the world\u00a0generated more electricity from coal than ever before, with an increase of 9% from the previous year,\u00a0according to the International Energy Agency.<\/p>\n
For 2022, total coal consumption \u2014 for generating power, making steel and other industrial uses \u2014 is expected to rise by almost 2% to a record of just above 8 billion metric tons and remain there through at least 2024.<\/p>\n
\u201cAll evidence indicates a widening gap between political ambitions and targets on one side and the realities of the current energy system on the other,\u201d the IEA said, estimating that carbon-dioxide emissions from coal in 2024 will be at least 3 billion tons higher than in a scenario reaching net-zero by 2050.<\/p>\n
Coal\u2019s story is inextricably linked with natural gas, often promoted\u00a0as the cleaner-burning alternative.<\/p>\n
Europe\u2019s energy crisis and the coal comeback<\/strong><\/p>\n As the world began to emerge from the pandemic in mid-2021, power demand surged as stores and factories reopened. But Europe, which had been leading the global charge away from coal, faced an unprecedented crunch for electricity and a shortage of natural gas.<\/p>\n At the same time, renewable power was\u00a0tight in the region and in some other parts other world. The confluence of events\u00a0sparked blackouts in some regions and sent gas prices to extremes around the world, ushering in the energy crisis.<\/p>\n Suddenly, coal was back in vogue as a less-expensive alternative. Thermal coal, the type burned by power plants, is one of the cheapest fuel sources \u201con the planet,\u201d with\u00a0costs at about $15 per million British thermal units, according to a report dated April 1 from\u00a0Bank of America.\u00a0That compares with about $25 for crude oil and the global price of $35 for natural gas, the report said.<\/p>\n The European Union, which has some of the world\u2019s most ambitious climate targets, saw its coal use jump 12% last year, the first increase since 2017 \u2014 albeit, that gain was from low 2020 levels.<\/p>\n Coal consumption climbed 17% in the US, and also rose in Asia, Africa and Latin America. India and China, which dominate global markets, were also big drivers for increasing world demand.<\/p>\n Just a few months ago, negotiators arrived in Glasgow for the COP26 climate conference\u00a0optimistic\u00a0they could \u201cconsign coal to history.\u201d<\/p>\n Instead, the climate talks ended in November with a\u00a0\u00a0watering down of the language on the use of coal.<\/p>\n China, the US and India are the three biggest polluters, and all three have now pledged to zero out their emissions in the decades ahead. Yet India and China pursued last-ditch interventions to soften language on coal usage, and the US played a role in accepting that weaker position, calling into question the nations\u2019 short-term commitment to curb coal.<\/p>\n And that was all before the recent\u00a0further revival for the market.<\/p>\n The IEA issued its annual demand outlook back in December. The agency now plans to issue a mid-year revision in July \u2014\u00a0its first time ever to do so \u2014\u00a0to analyze the impact of the war. In all likelihood, demand will be higher than the December forecast as Russia\u2019s invasion of Ukraine sets off a chain reaction in the global energy markets that further thrusts coal into the spotlight.<\/p>\n Can the EU give up Russian energy?<\/strong><\/p>\n Europe is desperate for a way to reduce its reliance on Russia, a key supplier of fossil fuels. The EU is moving to ban Russian coal while also cranking up its overall use\u00a0of the fuel as it seeks to simultaneously decrease its use of\u00a0Russian natural gas.<\/p>\n Europe\u2019s move is centered on the notion that it will be able to pay more for non-Russian coal supplies than other buyers, a gamble that\u2019s driving up global markets and could price out developing countries that may face shortages.<\/p>\n To help secure energy next winter, the German government is considering working with utilities like RWE AG to reactivate decommissioned coal-fired power plants and delay decommissioning of active facilities.<\/p>\n In Denmark, Orsted A\/S is shoring up coal supplies to use instead of biomass, because supplies of the carbon-neutral wood pellets have been disrupted by the war. And\u00a0Britain is\u00a0exploring\u00a0options to bolster energy security, including keeping open\u00a0Drax\u00a0Group Plc coal units.<\/p>\n \u201cIt\u2019s the last hurrah for coal in Europe,\u201d said Emma Champion, head of regional energy transitions at BloombergNEF.<\/p>\n Even before Europe\u2019s risky move, coal supplies were already precarious.\u00a0 A power plant in Germany had to\u00a0shut down\u00a0last year when it ran out of coal. Shortages also led to power\u00a0outag<\/a>es<\/a>\u00a0in India and\u00a0China, which together\u00a0account for about two-thirds of global coal consumption.<\/p>\n