Why coal is still a cornerstone of the global energy mix

Despite the fact that many countries have switched from fossil fuels, in 2023 the world’s coal consumption has reached a staggering level. 164 exajoules (EJ) of energy, a record for any year.

For this graph, Alan Kennedy of Visual Capitalist collaborated with The range of ETFs explore the role that coal plays in the global energy mix and determine which regions still consume large amounts of coal.

The role of coal in global energy

Coal is an important player in the global energy mix, contributing 26% of the world’s energy in 2023, more than all non-fossil fuel sources combined. The only energy source that contributed more to the global energy mix was oil.

Here’s how that consumption breaks down by region:

Percentages may not add to 100 due to rounding. *Community of Independent States

Coal consumption has declined in many regions. For example, both North America and Europe have reduced their coal power consumption by 16% in 2023. However, a heavy dependence on coal in the Asia Pacific region has led to global coal consumption remaining in essentially the same for the last 10 years.

In 2023, China increased its coal consumption from 88 EJ to almost 92 EJ – a total of 56% of global coal consumption. This has contributed significantly to Asia-Pacific being the world leader with 83% of global coal consumption.

The importance of coal

Easy access to existing infrastructure and reasonable prices have not only supported global coal consumption over the past 10 years, but also paved the way for potential growth. Many developing countries are now expanding their coal consumption, presenting potential opportunities in the coal market.

For example, according to the World Energy Statistical Survey 2024, between 2022 and 2023, Bangladesh and Colombia saw double-digit percentage increases in coal consumption year-over-year: 41 percent and 53 percent, respectively.

Coal continues to play an essential role in the global energy mix, particularly in the developing world, where its affordability makes it the current energy source of choice.

By Zerohedge.com

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