The International Energy Agency (IEA) forecast that the demand for coal globally will increase by about 2.6 per cent next year because of increase in use and demand electricity associated with increase in industrial output as economies all over the world recover from the Cvodi-19 induced slump.
The use and demand for coal dropped to record lows in the current year because of the economic slowdown due to the pandemic.
The Paris-based agency said in its Coal 2020 report that in 2021, the demand for thermal and metallurgical coal should rise to 7,432 million tonnes from 7,243 million tonnes in the current year.
IEA said that the usage of had reduced due to the pandemic this year resulting in a drop in demand of coal globally by 5 per cent.
The impact of the pandemic on the global economy coupled with countries around the world trying to shift to cleaner sources of energy will result in an unprecedented 7 per cent drop, eq1uivalent to or 500 million tonnes, in demand for coal globally between 2018 and 2020, the IEA said.
“Before the pandemic, we expected a small rebound in coal demand in 2020, but we have since witnessed the largest drop in coal consumption since the Second World War,” IEA’s director of energy markets and security, Keisuke Sadamori, said in a statement.
The IEA expects a rise in demand for coal next year from even the United States and Europe, which would be the first growth in demand in almost a decade. However it still expects that coal; demand for 2021 would still be lower than the 2019 levels. The organization expects a flattening out of coal usage by 2025 at about 7.4 billion tonnes annually.
Sadamori said that by 2025, it is likely that the usage of renewables would be more than coal as the largest global source of electricity, while coal’s place would be taken by natural gas as the second largest primary energy source after oil.
“But with coal demand still expected to remain steady or to grow in key Asian economies, there is no sign that coal is going to fade away quickly,” he added, with key Asian markets accounting for 75 per cent of the global coal demand.
Coal usage is one of the major contributors to global CO2 emissions and a pledge to attain carbon neutrality in the next decades has been taken by governments around the globe, including China, where the government has set 2060 to achieve carbon neutrality.
After the Chinese government releases its economic plans for 2021-2025, due in March, the IEA would be required to review its 2025 coal demand forecast, the organization said.
(Source:www.economictimes.com)
The use and demand for coal dropped to record lows in the current year because of the economic slowdown due to the pandemic.
The Paris-based agency said in its Coal 2020 report that in 2021, the demand for thermal and metallurgical coal should rise to 7,432 million tonnes from 7,243 million tonnes in the current year.
IEA said that the usage of had reduced due to the pandemic this year resulting in a drop in demand of coal globally by 5 per cent.
The impact of the pandemic on the global economy coupled with countries around the world trying to shift to cleaner sources of energy will result in an unprecedented 7 per cent drop, eq1uivalent to or 500 million tonnes, in demand for coal globally between 2018 and 2020, the IEA said.
“Before the pandemic, we expected a small rebound in coal demand in 2020, but we have since witnessed the largest drop in coal consumption since the Second World War,” IEA’s director of energy markets and security, Keisuke Sadamori, said in a statement.
The IEA expects a rise in demand for coal next year from even the United States and Europe, which would be the first growth in demand in almost a decade. However it still expects that coal; demand for 2021 would still be lower than the 2019 levels. The organization expects a flattening out of coal usage by 2025 at about 7.4 billion tonnes annually.
Sadamori said that by 2025, it is likely that the usage of renewables would be more than coal as the largest global source of electricity, while coal’s place would be taken by natural gas as the second largest primary energy source after oil.
“But with coal demand still expected to remain steady or to grow in key Asian economies, there is no sign that coal is going to fade away quickly,” he added, with key Asian markets accounting for 75 per cent of the global coal demand.
Coal usage is one of the major contributors to global CO2 emissions and a pledge to attain carbon neutrality in the next decades has been taken by governments around the globe, including China, where the government has set 2060 to achieve carbon neutrality.
After the Chinese government releases its economic plans for 2021-2025, due in March, the IEA would be required to review its 2025 coal demand forecast, the organization said.
(Source:www.economictimes.com)
