According to the International Energy Agency, after major drop in recent years coal demand set to rise next year and is unlikely to flatten out until 2025 as the coal industry is likely to benefit from the global economic recovery from the coronavirus crisis next year, with demand expected to rise 2.6 per cent as governments gear up to restart their economies in 2021. As such, the IEA warned there is little sign that the world's coal consumption was likely to decline substantially in the coming years, with rising demand in some Asian economies offsetting waning market interest in the high carbon power source elsewhere. The energy body said demand is likely to rebound next year driven by higher electricity demand and industrial output, with China, India, and Southeast Asian economies accounting for much of the growth, although it warned the US and Europe could also see their first increases in nearly a decade.
Nevertheless, after historic falls in coal demand of 1.8 per cent in 2019 and a projected five per cent in 2020, the IEA's estimates indicate coal consumption next year is still likely to remain below 2019 levels. It also expects rising coal demand to flatten out around 2025, when renewables are set to overtake coal as the largest sources of electricity in the world, potentially followed by gas-fired power.