Global coal demand is heading for its biggest annual drop since World War II as economic activity plunges due to coronavirus lockdowns. Burning coal to make electricity in several European countries has become unprofitable and socially untenable — crowded out by cheap natural gas and the proliferation of renewable energy as well as powerful environmental movements. The pandemic has only hastened its demise. Global coal demand will fall by 8%, the International Energy Agency said in a report gauging the impact of the virus across the energy business. The amount of the fuel burned for power will fall 10%.
The world’s biggest coal consumer, China, will see demand fall by 5% despite a gradual revival of its industries since lockdowns were eased. In Europe, where policies to quit coal altogether are taking effect, demand is set to slump by 20%, while the U.S. will see a 25% fall, the IEA said. In the past two weeks, Austria and Sweden announced that they have shut their last coal-fired power plants. They’ve now joined Albania, Belgium, Estonia, Latvia, Lithuania and Norway as countries without coal in their electricity mix.