In a historic move, the G-7 countries have announced their commitment to phasing out coal for electricity generation by 2035. This decision is aimed at reducing reliance on the dirtiest fossil fuel and reflects a broader trend towards reducing coal use in industrialized nations. However, the future of coal may be decided in other regions of the world where demand continues to rise.
Recent headlines have highlighted opposition from shareholders of raw materials company Glencore, who want to keep their profitable coal business. Despite this, the G-7 countries have set targets to reduce coal use and made a joint declaration to phase out coal for electricity generation by early 2030s with some exceptions for capturing and storing emissions. However, challenges remain, particularly in regions with high coal dependency like China.
Global coal consumption has not significantly decreased despite the commitments of the G-7 countries. Countries like China, India, and Indonesia continue to build new coal-fired power plants while expanding artificial intelligence and data centers also increase electricity demand worldwide. The IEA forecasts that global coal demand may peak in the coming years but 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 the future of coal as an energy source. With increasing awareness of environmental impacts associated with coal use, transitions to cleaner energy sources are essential for a sustainable future.