Coal-fired power generation on track to hit all-time high this year, IEA says



The towers of a coal-fired power station in South Africa were photographed on October 15, 2021.

According to a report from the International Energy Agency, coal-fired power generation is set to hit an all-time high this year.

Coal power generation was going to rise by 9% in 2021, according to the IEA.

The IEA said on Friday that the rebound was being driven by this year's rapid economic recovery, which has pushed up electricity demand much faster than low-carbon supplies can keep up.

Increased demand for coal power was made more cost-competitive by the rise in natural gas prices.

In terms of global demand for coal, which relates to areas like steel and cement production as well as power generation, this is slated to rise by six percent in 2021.

The IEA said in its report that coal demand may well hit a new all-time high in the next two years. In terms of coal production, the IEA said that it would reach an all-time high in 2022.

Coal is the single largest source of global carbon emissions, and this year's historically high level of coal power generation is a worrying sign of how far off track the world is.

Without strong and immediate actions by governments to tackle coal emissions, we will have little chance of limiting global warming to 1.5 C.

The landmark 2015 Paris Agreement, which aims to limit heating to 1.5 degrees Celsius compared to pre-industrial levels, is a nod to Birol.

The United Nations has noted that 1.5 degrees Celsius is the upper limit when it comes to avoiding the worst consequences from climate change.

Coal has a significant effect on the environment and the U.S. Energy Information Administration lists a range of emissions from coal. Carbon dioxide, sulfur dioxide, particulates and nitrogen oxides are included.

Coal is described as the dirtiest, most polluting way of producing energy by the environmental group.

The environmental group says that burning more carbon dioxide than oil or gas is a big problem when it comes to climate change.

Toxic elements like mercury and arsenic are produced by coal.

Coal has a significant environmental footprint and the scale of the task when it comes to reducing the planet's reliance on fossil fuels makes it an emotional topic.
The IEA report came just over a month after the COP26 climate change summit ended in Glasgow, Scotland.

The Paris Agreement sought to build on it and prevent the worst effects of climate change, but it faced stumbling blocks related to the phasing out of coal, fossil fuel subsidies and financial support to low-income countries.

India and China, both of which burn coal, insisted on a last-minute change of fossil fuel language in the pact. The opposing countries eventually conceded after initial objections.

China and India will account for two-thirds of global coal consumption, despite their efforts to increase renewables and other low-carbon energy sources, according to the IEA.

CNBC's Matt Clinch contributed to the report.