The G-7 countries have declared their intention to phase out coal as a source of electricity generation by 2035. However, the future of fossil fuels remains uncertain due to various factors. One significant development in this regard was the opposition of some shareholders in Glencore to the spin-off of its coal business, which highlights the complexities involved in transitioning away from coal.
While the G-7 countries have committed to ending unabated coal-fired electricity generation by the first half of the 2030s, they have left room for flexibility in the transition. Countries like Germany, France, and the UK have already made progress in reducing their reliance on coal, but challenges remain, especially in Japan where coal usage is higher.
Despite global efforts to reduce coal consumption, demand has remained high in recent years due to several factors such as rising natural gas prices and new coal-fired power plants in countries like China, India, and Indonesia. Additionally, electric vehicles’ success in China is tempered by the country’s significant coal usage for electricity generation.
The International Energy Agency predicts that global coal demand may peak in 2026; however, this trajectory depends on various factors such as China’s economy and emerging technologies’ energy needs like artificial intelligence. The growing demand for electricity driven partly by data centers and AI could sustain the need for coal in some regions.
In conclusion, while the G-7 countries are making progress towards phasing out coal as a source of electricity generation, achieving a sustainable and low-carbon energy future requires a combination of policy measures, technological advancements, and shifts in energy consumption patterns.
