War increased dependence on coal

According to the agency's report, carbon emissions from coal will increase by at least 3 billion tons in 2024.
Electricity demand has also increased as factories and shops opened in the world as pandemic restrictions were eased in mid-2021. However, many regions, especially in Europe, which moved away from coal consumption, faced natural gas problems and power cuts. This situation caused natural gas prices to increase all over the world and triggered the energy crisis.

Demand for more affordable coal has also increased. In the European Union, which sets the world's most ambitious targets for climate, coal use increased by 12 percent last year. This was the first increase since 2012. While coal consumption increased by 12 percent in the USA, consumption also increased in Asia, Africa, Latin America, India and China.

The price of the benchmark futures contract in Australia was below $100 per tonne and rose to $280 in October. After the invasion of Russia, prices rose to an all-time high of $440. Similar increases were seen in Europe and the USA. Prices in the US hit a 13-year high this month.

“The coal supply chain was not prepared for this kind of shock,” said Xizhou Zhou, Head of Global Energy at S&P Global.