The G-7 countries have announced their intention to phase out coal for electricity generation by 2035, with the goal of reducing reliance on the dirtiest fossil fuel. However, the future of fossil fuels, particularly coal, may be decided in other regions of the world. While the G-7 countries, which include major industrialized nations like Germany, France, and the United States, have set targets to reduce coal use, global demand for coal has continued to rise.
Recently, headlines have highlighted shareholders of a major raw materials company, Glencore, who opposed a spin-off of the company’s profitable coal business. At the same time, the G-7 countries made a joint declaration to phase out coal for electricity generation by 2035 with some exceptions for capturing and storing emissions. This decision reflects a broader trend towards reducing coal use in industrialized countries; however, challenges remain in regions with high coal dependency such as China.
Despite the commitments of the G-7 countries, global coal consumption has not significantly decreased. Countries like China, India and Indonesia continue to build new coal-fired power plants contributing to ongoing coal consumption worldwide. The expansion of artificial intelligence and data centers is also expected to increase electricity demand potentially leading to continued reliance on coal in some regions.
The International Energy Agency (IEA) forecasts that global coal demand may peak in coming years but uncertainties remain about its future role in energy transition. Decisions made by countries like China and development of new technologies and industries will play a crucial role in determining whether or not coal will continue as an energy source in future years. With increasing awareness of environmental impacts associated with burning fossil fuels it is clear that transitioning towards cleaner energy sources will be essential