Coal economy

  • IASbaba
  • December 20, 2022
  • 0
Print Friendly, PDF & Email

In News: IEA’s Coal 2022: Analysis and forecast to 2025 report says coal is set to continue to be the growth engine of global coal demand.

  • Global coal demand reached eight billion tonnes this year.
  • In the absence of low-emissions alternatives that can replace coal at scale in the iron and steel sector in the near term, global coal demand is set to remain flat through the forecast period.


  • India, along with China, is the world’s largest coal producer, consumer, and importer.
  • Its own coal production will surpass a billion tonnes by 2025 as per the annual report of the International Energy Agency (IEA).
  • India’s coal consumption has doubled since 2007 at an annual growth rate of 6 per cent.
  • India and China, are also the only two countries globally where there has been an uptick in investment in coal mine assets because domestic production has been ramped up in both countries to reduce external reliance.


  • Due to The Russian invasion of Ukraine and reliance on Russian gas, Europe sparked a surge in gas prices, which in turn pushed coal prices.
  • The spike in the prices of gas due to the war as well as lower output from hydro and nuclear led to ‘fuel switching’ to coal in the European Union to generate power.
  • However, in India and China, where coal is the backbone of electricity systems and gas accounts for just a fraction of power generation, the impact of steeper gas prices on coal demand has been limited.
  • Still, the production of electricity from coal has not been much in most European countries except for Germany.
  • However, both US and EU coal generation and demand will return to a downward trajectory soon.


  • Coal power generation in China increased by around 15 per cent year-on-year to over 500 terawatt-hours (TWh).
  • Increase in renewable power generation in China means that growth in coal consumption is expected to remain relatively stagnant at an average of 0.7 per cent a year to 2025.

MUST READ India’s coal mines

Source: DTE

Previous Year Question

Q1.) In India, what is the role of the Coal Controller’s Organization (CCO)?

  1. CCO is the major source of Coal Statistics in Government of India.
  2. It monitors progress of development of Captive Coal/Lignite blocks.
  3. It hears any objection ‘ to the Government’s notification relating to acquisition of coal-bearing areas.
  4. It ensures that coal mining companies deliver the coal to end users in the prescribed time.

Select the correct answer using the code given below:

  1. 1, 2 and 3
  2. 3 and 4 only
  3. 1 and 2 only
  4. 1, 2 and 4


For a dedicated peer group, Motivation & Quick updates, Join our official telegram channel – https://t.me/IASbabaOfficialAccount

Subscribe to our YouTube Channel HERE to watch Explainer Videos, Strategy Sessions, Toppers Talks & many more…

Search now.....

[jetpack_subscription_form title="Sign Up To Receive Regular Updates" subscribe_button="Sign Up Now !" subscribe_text=""]