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Days After COP28, IEA Delivers More ‘Coal’-Hard Reality

by Robert Bryce
December 18, 2023, 8:16 AM
in News and Opinion
Reading Time: 6 mins read
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china coal plantLike The Dude in The Big Lebowski, coal abides.

Last Friday, two days after the COP28 meeting in Dubai ended, the International Energy Agency reported that global coal demand will set another new record this year.

The IEA said that the use of this carbon-heavy fuel in Western countries is falling, but demand in emerging and developing economies “remains very strong, increasing by 8% in India and by 5% in China in 2023 due to rising demand for electricity and weak hydropower output.” [emphasis, links added]

The IEA expects coal use to rise by 1.4% this year and set a new record of 8.5 billion tons. That increase shows, yet again, how difficult it will be to achieve significant cuts in CO2 emissions from hydrocarbon use.

Mainly due to coal use, which accounts for about 40% of emissions from energy, global CO2 emissions will set another new record in 2023 of 36.8 billion tons.

Surging coal use also shows that the Iron Law of Electricity hasn’t been repealed. That law says that people, businesses, and countries will do whatever they must to get the electricity they need.

The surge in coal use is a sober reminder that the carbon-heavy fuel remains a cornerstone of electricity generation, particularly in Asia. The IEA noted that coal-fired generation will rise by about 158 terawatt-hours, or 1.5%, this year.

It also reported that India and China have “struggled to keep the lights on during periods of high electricity demand…owing to coal shortages and high prices. As a result, both governments have intensified efforts to increase coal production.”

The surge in coal use also shows that the effort by Michael Bloomberg, who has given $1.1 billion to the Beyond Carbon campaign to shutter huge amounts of U.S. coal- and gas-fired generation capacity, will have little if any discernible effect on global emissions. (More on that in a moment.)

Furthermore, despite the exciting announcement at COP28 that more than 20 nations have pledged to triple nuclear energy production by 2050, the amount of new coal-fired capacity under construction is eclipsing, by a vast margin, the current growth in nuclear energy.

The ongoing increase in coal use provides a strong counter-narrative to claims that policymakers made significant progress in Dubai.

On Wednesday, the UNFCC issued a press release that said the agreement reached at the end of the meeting “signals the ‘beginning of the end’ of the fossil fuel era by laying the ground for a swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance.”

It also calls for accelerated efforts “towards the phase-down of unabated coal power.” Another agreement calls for a tripling of global renewable energy capacity by 2030. (My prediction: that goal is just more happy talk. There is no way that target will be achieved.)

A hundred twenty-three countries signed the renewable pledge. As seen in the graphic below, which I made using Statistical Review of World Energy data from 2022, even a tripling of renewable capacity won’t make a huge dent in global hydrocarbon use, and therefore, achieving the net zero target by 2050 is little more than wishful thinking.

After the Dubai meeting, U.S. climate envoy John Kerry claimed the agreements made at COP28 are sending “very strong messages to the world.” But those messages aren’t being heard in Beijing, New Delhi, or Jakarta.

China, India, and Indonesia didn’t sign the agreement to triple renewables. And while those three countries are boosting their renewable production, they are also the largest coal producers globally.

The IEA coal report states, “All three are expected to break output records in 2023.” Furthermore, those three countries are building 182,000 megawatts of new coal-fired capacity.

Put another way, about 89% of global coal-fired capacity is being built in those three countries. For perspective, the U.S. now has about 200,000 megawatts of coal-fired capacity.

As I noted last Tuesday in “COP28 Gets Coal In Its Stocking,” demand for the commodities needed for alt-energy projects in Western countries, including EVs and solar panels, has spurred growth in electricity demand in Asian nations like China and Indonesia and:

Some 204,000 megawatts of new coal-fired capacity is now under construction around the world. Of that 204,000 MW, about 67% is in China. To put that massive amount of new capacity in perspective, the U.S. currently operates about 205,000 MW of coal-fired power plants… In addition to the huge amount now being built, another 353,000 MW of coal-fired capacity has been announced, pre-permitted, or permitted. Of that 353,000 MW in the queue, about 72% is in China.

All of that new coal-fired capacity will be added to the existing coal fleet, which now totals 2.1 terawatts (TW), according to the latest data from Global Energy Monitor.

The slide below is similar to the one I published last week. But it better illustrates the staggering scale of China’s installed capacity.

By itself, China has more than five times as much coal-fired capacity as the U.S. The slide also shows the enormous amount of new capacity China has in the queue.

Of course, the ongoing growth in coal demand doesn’t fit the narrative promoted in Dubai about the end of “unabated” coal use. Indeed, the IEA’s coal report mocks several previous reports issued by the Paris-based agency.

In 2015, the IEA declared, “The golden age of coal in China seems to be over.” That year, the agency predicted global coal demand would fall to 5.5 billion tons by 2020. 

Also in 2015, following the COP meeting in Paris, the IEA’s Executive Director Fatih Birol said, “investments in projects using high-carbon fuels were risky.”

Birol said, “Investors are free to do what they want, but I see there will be growing pressure on high-carbon investments in the years to come,” Birol said.

He continued, “Renewable energy is becoming a mainstream fuel. With declining costs of renewables and strong government support, they are becoming the favorite option for many investors.”

In its World Energy Outlook 2017, the IEA said, “China remains a towering presence in coal markets, but our projections suggest that coal use peaked in 2013 and is set to decline by almost 15% over the period to 2040.”

Global coal didn’t peak in 2013 or 2015. Instead, it has risen dramatically.

That surge underscores the danger that the U.S. faces from climate activists who are funded by the Beyond Carbon campaign and are trying to shutter all of the remaining domestic coal plants and half of America’s natural gas plants.

Read rest at Substack

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Comments 2

  1. Steve Bunten says:
    1 year ago

    After the Dubai meeting, U.S. climate envoy John Kerry claimed the agreements made at COP28 are sending “very strong messages to the world.” But those messages aren’t being heard in Beijing, New Delhi, or Jakarta.

    It is also not being heard on the US Main Street or in suburbia. We know this is all Kabuki Theater (or Theater of the Absurd) by looking around and seeing construction of resorts (including ski resorts where there will soon be no snow, right?), new giant cruise ships, airlines adding new jets and new routes.

  2. SPURWING PLOVER says:
    1 year ago

    A little truth for those Keep it in the Ground idiots

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