World Coal Production Just Had Its Biggest Drop on RecordFossil fuel sees ‘decisive break’ from period of demand growth. Carbon emissions show little or no growth for third year: BP.
It’s the end of an era for coal. Production of the fossil fuel dropped by a record amount in 2016. China, the world’s biggest energy consumer, burned the least coal in six years and use dropped in the U.S to a level last seen in the 1970s.
Coal, the most polluting fuel that was once the world’s fastest growing energy source, has been a target of countries and companies alike as the world begins to work toward the goals of the Paris climate agreement. Consumption is falling as the world’s biggest energy companies promote cleaner-burning natural gas, China’s economy evolves to focus more on services than heavy manufacturing and renewable energy like wind and solar becomes cheaper.
Global consumption dropped 1.7 percent last year compared with an average 1.9 percent yearly increase from 2005 to 2015. “At the heart of this shift are structural, long-term factors,” Dale said. These include “the increasing availability and competitiveness of natural gas and renewable energy, combined with mounting government and societal pressure to shift away from coal towards cleaner, lower-carbon fuels.”
Consumption of coal fell in every continent except Africa. Germany, Europe’s biggest user, consumed 4.3 percent less coal. U.K. demand fell 52.5 percent, the biggest percentage decline among the world’s major economies.
Global carbon emissions, which grew at an annual average rate of about 2.5 percent in the 10 years to 2013, remained stagnant in the past three years. While some of this reflects weaker economic growth, the majority reflects faster declines in “the average amount of carbon emitted per unit of GDP.”
The Natural Gas Boom Shows No Signs Of SlowingGlobal coal consumption declined by 1.7 percent to its lowest level since 2010. Coal consumption has been falling for a couple of reasons. Countries around the world are passing legislation to limit carbon dioxide emissions, and cheap natural gas and renewables are providing economic alternatives to coal. Last year’s decline marks the second consecutive annual decline in coal consumption.
Almost every region of the world saw a decline in coal consumption. In the Organization for Economic Co-operation and Development (OECD) countries — primarily the world’s developed countries — coal consumption fell by 6.4 percent. In the European Union, it declined by 8.9 percent. U.S. coal consumption continued to fall sharply. The 8.8 percent decline in consumption took U.S. coal demand to its lowest level since 1978. U.S. coal production followed, with a 19.0 percent decline to levels also not seen since the 1970’s. China’s consumption declined last year as well, which accounted for about 50 percent of the global drop in coal consumption.
Graph: Global Coal Consumption
BP 2017 energy outlook is out: BP Energy Outlook 2017