Coal burning for power generation poised to set record

RIO DE JANEIRO, BRAZIL – Power generation from the most polluting fuel is set to rise 9% over last year, according to an International Energy Agency report released Friday. This reversal from the drop seen in the two preceding years threatens the global trajectory of zero net emissions by 2050, the agency said.

The U.S. and European Union recorded the largest increases in coal use, about 20% each, followed by India, with 12%, and China – the world’s largest consumer – with 9%, the IEA estimated.

Demand for coal has been boosted by the economic rebound from the impact of the Covid-19 pandemic, which cannot be met at the same pace by low-carbon energy sources.

“Coal is the largest source of global carbon emissions, and this year’s historically high level of coal-fired power generation is a worrisome indication of how far off the world is in its efforts to reduce emissions to zero,” said IEA Executive Director Fatih Birol.

Record natural gas prices have increased dependence on other sources like coal and boosted calls for faster investment in renewable energies. Energy prices in Europe have more than tripled in the past 6 months and it has become more profitable to burn coal than gas. Nevertheless, power companies are still fighting over the commodity, despite increased production in China and the U.S..

Carbon dioxide emissions from coal in 2024 are now expected to total at least 3 billion tons more than in a net zero scenario in 2050, the report said.

The IEA expects coal to peak next year at 8.11 billion tons, with the largest increases in output from China, Russia and Pakistan.