Global demand for coal, the most carbon-emitting fuel, is slated to grow slightly over the next 5 years, according to a new International Energy Agency forecast.
Why it matters: The latest projection of coal's persistence in the global energy mix arrives on the heels of major scientific reports warning that worldwide emissions must start plummeting — and soon — to avoid potentially disastrous warming.
- "Despite significant media attention being given to divestments and moves away from coal, market trends are proving resistant to change," IEA said.
- However, the agency's latest 5-year lookahead report trims its demand growth forecast slightly compared to last year's analysis.
The big picture: Surging demand in India and elsewhere in southeast Asia — including Indonesia and Vietnam — is driving the uptick.
- It's cancelling out substantial declines in Europe and the U.S., which continues to move away from coal despite White House efforts to revive its fortunes.
Where it stands: Keisuke Sadamori, IEA's director of energy markets and security, said in a statement:
- “The story of coal is a tale of two worlds with climate action policies and economic forces leading to closing coal power plants in some countries, while coal continues to play a part in securing access to affordable energy in others.”
Buzz: IEA is using the forecast to make the case for stronger global efforts to deploy Carbon Capture, Utilization, and Storage (CCUS) technologies in the power sector.
