The Decline of Coal: Are we Doing Enough?

Feb 15

**Is enough being done to reduce global consumption of coal?**

Coal is the most carbon intensive fossil fuel which when burned, directly leads to the production of carbon dioxide and the subsequent warming of the earth.[1] Currently, 37% of the world’s electricity and over 70% of the world’s steel is produced using coal. [2] In order to prevent global warming, there must be a united global effort to reduce our coal consumption.

It is estimated that in order to reach the commitments of the Paris Agreement to limit global warming to 1.5°C, global coal use needs to reduce by 80% by 2030 and needs to be phased out completely by 2040. [3] Ahead of the COP26 Climate Summit taking place in Glasgow this November, the UK has also set the target of becoming carbon neutral by 2050. [4]

There are reasons to remain optimistic about accomplishing these targets. The International Energy Agency announced in December 2020 that global coal consumption had fallen by 7% between 2018 and 2020.[5] Additionally, in 2020 alone, the global capacity of operating coal-fired stations shrank for the first time in history from 2,055GW in 2019 to 2,048GW. [6]

Much of this decline in our global usage of coal is attributed to the ongoing Covid-19 pandemic. National lockdowns all over the world have led to a drastic drop in demand for energy as shops, offices and restaurants have been forced to close. But will these trends remain once lockdown has lifted? Or is the reduction in coal usage simply a short term by product of national lockdowns?

The International Energy Agency believes that global usage of coal will never exceed pre-covid levels. [7] This is especially because international coal mining companies have announced discontinuing the production of the fossil fuel as investors have become increasingly concerned about global warming. [8] Vale SA, Evraz PLC and Rio Tinto Group are among the few coal mining firms looking to exiting the industry. [9]

However, not all mining companies are taking this step. Glencore PLC, who earn about one third of its total profits from coal, is looking to remain in the industry for the foreseeable future.[10] Instead, Glencore have recently pledged to become carbon neutral by 2050 becoming the first miners to align fully with the Paris Agreement goals. [11] Although a pledge is a promising step towards a global reduction in coal, the worry remains that corporations are simply greenwashing their efforts to genuinely reduce coal production.

This worry equally remains when analysing the efforts to reduce coal usage from national governments. Despite President Xi Jinpings target to cut China’s emissions to zero by 2060, coal usage in Asia has increased 25% over the last decade. [12]

The same story resonates with the UK. Although we have set a target to become carbon neutral by 2050, government ministers have recently signed on a £165 million coal mine set to be dug in Cumbria. The mine will increase UK emissions by 0.4 megatons of CO2e per year making climate goals even harder to hit. [13]

Despite the reckless decisions of a few that go against the goals of the Paris Agreement to reduce global emissions, there still remains reason to be optimistic. China’s carbon emissions trading scheme was introduced on the 1st of February. The scheme will put a price on carbon emissions on over 2,000 power stations across the country hoping to reduce the nations production of carbon emissions. [14]

Significant progress has also been made in coal reduction over the last decade in America and Europe, with coal consumption declining by 34% since 2009. [15] Sweden, Belgium and Austria have led the battled against coal in Europe, becoming the first countries to be completely coal free. [16] In America, President Biden’s entrance into office has seen the creation of the National Climate Task Force. The task force is comprised of 21 federal leaders to focus on issues such as low cost energy storage and sustainable fuels for planes. This is the first step for America’s goal to achieve carbon neutrality by 2050. [17]

However the battle is not over. We must do more to ensure that global coal production is eradicated by 2040. A short term reduction as a result of Covid-19 Lockdowns will not be enough to sustain a reduction in global coal usage. We need more than just pledges from the worlds corporations and governments. In order to see a substantial reduction in coal, we now global need action.

[1] https://www.bloomberg.com/news/articles/2021-02-02/dumping-coal-can-be-good-for-insurer-stock-value-green-insights

[2] https://www.worldcoal.org/coal-facts/coals-contribution/

[3] https://www.newstatesman.com/business/sustainability/2021/01/how-coal-s-uneven-retreat-threatens-world-s-climate

[4] https://www.independent.co.uk/climate-change/cumbria-coal-mine-whitehaven-latest-b1795179.html

[5] https://www.iea.org/reports/coal-2020

[6] https://energymonitor.ai/sector/power/coal-finance-coal-in-asia-fading-but-not-fast-enough

[7] https://www.economist.com/leaders/2020/12/03/time-to-make-coal-history

[8] https://www.bloomberg.com/news/articles/2021-01-27/glencore-is-looking-lonely-as-retreat-from-coal-becomes-stampede

[9] https://www.bloomberg.com/news/articles/2021-01-27/glencore-is-looking-lonely-as-retreat-from-coal-becomes-stampede

[10] https://www.bloomberg.com/news/articles/2021-01-27/glencore-is-looking-lonely-as-retreat-from-coal-becomes-stampede

[11] https://www.ft.com/content/8469ef8b-86a1-4260-a280-2a18ed19b2ef

[12] https://www.economist.com/leaders/2020/12/03/time-to-make-coal-history