Coal Pile – Where Coal is Heading as a Future Energy Source
According to the International Energy Agency (IEA), the demand for coal is expected to decline in the coming years, as renewable energy sources become more affordable and accessible. The IEA’s report also highlights the need for countries to transition to cleaner forms of energy to meet their carbon emission reduction targets, and address the climate crisis. The increase in global coal use in 2022 was primarily driven by rising demand in developing countries, particularly in Asia, which often lack the necessary infrastructure and resources to transition to cleaner forms of energy.
In contrast, the use of coal has been declining in many developed countries as they have access to a broader range of energy sources and have implemented policies to encourage the use of cleaner energy. The use of coal in the electricity sector is also expected to decline as the cost of renewable energy sources such as solar and wind continues to decrease. The IEA also believes that the global power sector is undergoing a “rapid transformation” and that renewable energy sources are expected to make up a larger share of the world’s electricity mix in the future. The prediction is that global coal demand will plateau at around 8 billion metric tons by 2025.
What do you think about the future of coal?
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
