G7 Countries to Cease Coal Use in Energy Sector by 2035
Energy ministers from G7 countries have agreed to sign a deal to phase out coal for electricity generation between 2030 and 2035. Germany and Japan, where coal power stations generate over a quarter of all electricity, will receive some extensions, Reuters reports.
Germany has legislatively set a final goal of closing coal-fired power plants by 2038. As for Japan, the government has not yet specified a closing date for coal stations.
This agreement marks a significant step in the global strategy of gradually phasing out fossil fuel use. The issue was discussed at last year's UN COP28 climate summit in Dubai, but no decisions regarding coal use in energy were made then.
Apart from the closure of coal-fired power stations, potential restrictions on Russian liquefied natural gas imports to Europe are also being discussed at the G7 energy ministers' meeting.
"This is on the technical and political agenda of the G7. We are working on it, and if there is a final decision, I will announce it," said Italy's Energy Minister Gilberto Pichetto Fratin, who chairs the G7 meeting.
The International Energy Agency (IEA) estimated global coal demand in 2023 at a historically high level of 8.54 million tons, 1.4% higher than in 2022.
There are two opposing trends in coal consumption globally. While the EU and the US are rapidly reducing their use of this fuel, demand remains high and continues to grow in developing countries.
In absolute terms, China saw the largest increase in coal demand in 2023 (by 220 million tons or 4.9%), followed by India (by 98 million tons or 8%) and Indonesia (by 23 million tons or 11%). Meanwhile, the EU saw a reduction of 107 million tons (23%), and the US saw a reduction of 95 million tons (21%).
The organization's forecast for the coming years predicts a decline in global coal demand starting in 2024 due to the widespread adoption of renewable energy sources, particularly in China. This indicates that coal likely reached its peak use in 2023, as stated in the report.