Record High Coal Consumption in China Despite Real Estate Crisis
Global coal consumption has surged to an unprecedented 8.77 billion metric tons in 2024, according to a report from the International Energy Agency (IEA). This increase has been driven primarily by soaring electricity demands that have outstripped the growth of renewable energy sources. Despite global efforts to transition to cleaner energy, coal remains a prominent part of the energy landscape, particularly in China, where it constitutes over 60% of electricity generation.
China's coal demand reached 4.9 billion tons in 2024, making it responsible for more than a third of the world's total consumption. Additionally, China recorded a historic import level of 542.7 million tons of coal, reflecting a 14.4% rise from the previous year. Analysts attribute this rise to lower international coal prices, which have made it more economical for China to import coal while stabilizing domestic energy costs.
Although China's consumption has grown by approximately 1% this year, the reduction in coal usage in sectors like cement and steel—partly due to a sluggish real estate market—has not significantly impacted overall demand. The IEA forecasts that, despite advancements in renewable energy, China's coal consumption will continue to set new records in the coming years, with expectations that global demand may plateau by 2027.
As a critical player in the global energy market, China's choices regarding coal usage will have long-lasting effects on both its domestic policy and international efforts to combat climate change.
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