Globally, the demand for coal is set to slow down gradually

India faces a mixed outlook, with a strong push for domestic production tempered by the urgent need for imports due to coal quality issues

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As a traditional feedstock, coal is the cornerstone of electricity generation in many countries. At the same time, it is the single largest source of carbon dioxide emissions globally. This combination places it at the centre of international dialogues on energy.

The coal market worldwide will have to brace for uncertainty, as a range of different trends could shape the market in the years ahead. Energy systems around the world are undergoing change, as energy transition and decarbonisation become key themes for countries to pursue.

Global coal use has hit a ceiling and is set to begin a slow decline over the next five years, as renewables and liquefied natural gas (LNG) gain ground, according to the International Energy Agency (IEA).

The coal demand is expected to edge up 0.5% this year to a record 8,845 million tonnes before slipping 3% by 2030, according to the IEAS annual coal report published recently.

It is recognised that coal is the most polluting of all fossil fuels, and it remains the single largest source of carbon dioxide emissions globally. Burning it contributes to accelerating climate change, and many countries, including the UK, France and Spain, have eliminated or are about to phase out its use.