Despite efforts global coal demand remains stable
As reported by the International Energy Agency (IEA), demand for coal remains stable despite global efforts to reduce its consumption. In 2018, global coal demand recorded a slight, but significant growth rate of 1.1%. During the period between 2000 and 2017, demand for coal recorded growth of over 66%. IEA forecasts that coal demand will remain stable throughout the next couple of years, as well. However, this assumption is largely dependent on China as it is responsible for roughly half of overall global coal demand.
As things stand, coal still accounts for almost 40% of electricity generation. Apart from China, India and developing countries of Southeast Asia heavily rely on coal to fuel their growth. Countries like Pakistan, Bangladesh, Indonesia and Vietnam are all developing coal-fired units. Coal fired thermal power plants provide a reliable source of electricity and are fuelled by a relatively affordable commodity. As such, they present a valuable addition to a generation portfolio of a developing country. This is why it will take years for the global coal demand to start declining, despite strong efforts made by the EU and a number of developed countries across the world.