Page 5 - AsiaElec Week 01 2023

AsiaElec COMMENTARY AsiaElec

producers, there is no sign of surging investment from existing coal consumption plants in power
in export-driven coal projects. and industry alone will easily tip the world over
Governments, banks and investors – as well the 1.5°C limit.
as mining companies – continue to show, in The IEA’s Coal in Net Zero Transitions report,
general, a lack of appetite for investment in coal, which was launched at COP27, said that that
particularly thermal coal. the overwhelming majority of current global
Coal demand is forecast to fall in advanced coal consumption occurs in countries that have
economies in the coming years as renewables pledged to achieve net-zero emissions. He also
increasingly displace it for electricity genera- warned that coal had stubbornly refused to
tion. However, emerging and developing econ- decline in recent years.
omies in Asia are set to increase coal use to help Crucially, the report said that global coal use
power their economic growth, even as they add was heavily concentrated in a relatively small
more renewables. Developments in China, the number of countries, such as China, the US and
world’s largest coal consumer, will have the big- South Africa, where the fuel plays important
gest impact on global coal demand in the coming roles in the economy, local development and
years, but India will also be significant. energy systems.
Coal used in electricity generation, the larg- Yet despite coal’s resilience as a source of
est consuming sector, grew by just over 2% in energy, the IEA said in a separate report in
2022. By contrast, coal consumption in industry November 2022 that solar was set to overtake
declined by over 1%, mainly driven by falling coal as the world’s leading source of power sup-
iron and steel production amid the economic ply by early 2025.
crisis. Renewable energy growth was now being tur-
bocharged and would double over the next five
Climate threat years as a direct result of governments seeking
The persistence of coal is a major threat to the to strengthen energy security during the current
climate, with Fatih Birol, executive director of energy crisis, the IEA said.
the IEA, warning COP27 in November 2022 that The key issue was that the war in Ukraine and
reducing coal consumption was the central chal- the wider gas price crisis had kick-started renew-
lenge to achieving the world’s climate targets. ables expansion, and forced governments to put
He warned that if nothing is done, emissions greater focus on renewables.™

Week 01 03•January•2023 www. NEWSBASE .com P5