Like Halloween’s Michael Myers, no matter what you do, coal just won’t go away.
What happened: Higher energy costs and a spike in coal usage are wreaking havoc with the world’s net-zero emission goals by 2050, as ExxonMobil warns that the target is increasingly unlikely. Coal production hit 8.8 billion tonnes in 2024, an all-time high that’s expected to be eclipsed this year.
- China is still the largest consumer, but the U.S. is coming on strong: coal consumption rose 12% in the first half of the year, while Trump signed executive orders to further expand the industry.
Big picture: The U.S. is leading the charge on exporting more coal to the world. Meanwhile, weather variations impacted by global climate change have forced places like China and India to revert to coal energy, given its consistency compared to renewables like solar and wind.
- The International Atomic Energy Agency is predicting a dip in coal demand starting in 2026, but consumption will still be high considering current record-high levels.
Why it matters: As concerns about climate change get pushed aside, it will be harder to get the world back on track to reduce carbon emissions, even if coal use dwindles. Democratic countries cannot resist the siren call of cheap energy, due to the destabilizing effects of higher prices.—GS