The G-7 countries have pledged to phase out coal for electricity generation by 2035 in an effort to reduce their reliance on the dirtiest fossil fuel. However, the future of coal may be decided in other regions of the world. While 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.
Recent 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, although challenges remain in regions with high coal dependency like 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 the coming years due to increased awareness about its environmental impacts and potential replacement by cleaner energy sources such as wind and solar power. However, uncertainties remain about the future role of coal in the energy transition as decisions made by countries like China will play a crucial role in determining its future as an energy source.
In conclusion, while progress towards phasing out coal is being made at an international level through initiatives taken by governments such as those seen among G-7 countries
