India and China's renewable energy targets are ambitious, coal demand will not decline

Liputan6.com, Jakarta – Coal demand from China and India is forecast to continue to rise despite setting ambitious targets for transitioning to renewable energy.

“If India and China continue to see decent economic growth over the next decade, we won't see a decline in global coal demand anytime soon,” said Ian Roper, commodities strategist at Astris Advisory Japan KK, on ​​CNBC International on Thursday (11/01/2024). ).

In 2023, global coal consumption reached a record high, surpassing the 8.5 billion ton mark for the first time. According to the IEA report, the increase was supported by high demand in developing countries such as India and China.

Likewise, the IEA had previously said it does not expect coal consumption to slow, including in India and Southeast Asia, where significant growth is forecast.

The IEA said China's share of global electricity consumption, 60 percent of which comes from coal, is expected to rise to a third by 2025, up from a quarter in 2015.

Meanwhile, Rob Thummel, managing director of energy investment management firm Tortoise Capital, said India's rapidly developing economy also means the country's energy demand, including oil and natural gas, will increase significantly.

It was recorded that as of March 2023, coal production in India increased to 893 million tonnes in the financial year, registering an increase of nearly 15 per cent over the previous year.

Meanwhile, China's raw coal production rose 2.9 percent from January to November in 2023 compared to the same period in 2022.

In contrast, the United States, the world's second-largest coal consumer, has seen a decline in fuel consumption.

The Institute for Energy Economics and Financial Analysis said the amount of coal the country consumes daily fell by 62 percent, from 2.8 million tons to 1.1 million tons per day.