In a significant step towards reducing their reliance on the dirtiest fossil fuel, the G-7 countries have announced their commitment to phasing out coal for electricity generation by 2035. However, the future of coal may be decided in other regions of the world where global demand for coal continues to rise.
While major industrialized nations like Germany, France, and the United States have set targets to reduce coal use, shareholders of a major raw materials company, Glencore, recently opposed a spin-off of their profitable coal business. Despite this opposition, the G-7 countries have made a joint declaration to phase out coal for electricity generation by 2030s with some exceptions for capturing and storing emissions. This decision reflects a broader trend towards reducing coal use in industrialized countries.
However, challenges remain in regions with high dependency on coal like China. While commitments from the G-7 countries are commendable, global demand for coal has not significantly decreased. Countries like China, India and Indonesia continue to build new coal-fired power plants contributing to ongoing global consumption of coal. The expansion of artificial intelligence and data centers is also expected to increase electricity demand potentially leading to continued reliance on coal in some regions.
The International Energy Agency (IEA) forecasts that global coal demand may peak in the coming years; however uncertainties remain about its future role in energy transition. The decisions made by countries like China and development of new technologies and industries will play a crucial role in determining future of coal as an energy source. With increasing awareness of environmental impacts of coal use it is clear that transitions to cleaner energy sources will be essential in coming years.