Polluting coal users and renewable producers

Coal fired power

The highest coal using countries in the world

  • China, which consumes over half of the global coal demand and produces over 4 billion tonnes of coal per year.
  • India, which consumes about 14% of the global coal demand and produces over 900 million tonnes of coal per year.
  • The United States, which consumes about 9% of the global coal demand and produces over 600 million tonnes of coal per year.
  • Japan, which consumes about 3% of the global coal demand but imports most of its coal.

These countries accounted for about 82% of the global coal production in 2021 according to 2021 data set. China alone produced more than half of the world’s coal, followed by India with nearly 10%.

Global coal use in 2023 hits few high

Global coal use in 2023 has hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in countries like India and China, said IEA. These countries are the world’s largest consumers of the dirtiest fossil fuel, and continued modernization puts their energy consumption on a rapid growth trajectory.

China

China and India’s growing economies will continue to fuel demand for coal even as they set ambitious renewable energy targets, according to experts.

While China is the world’s largest energy consumer, India is ranked third globally, and both countries are the top consumers of coal as they strive to fuel economic growth. 

China’s share of global electricity consumption, 60% of which is coal, is set to jump to one-third by 2025, compared with a quarter in 2015, according to projections by energy watchdog International Energy Agency (IEA).

Global coal usage in 2023 hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in emerging and developing countries such as India and China, IEA noted in a recent report

China’s electricity sector has been in the throes of a clean revolution over the past few years, with an almost five-fold growth in wind and solar generation since 2015. As a result, the share of coal generation has fallen by 17 percentage points, from 78% in 2000 to 61% in 2022. 

China has suffered from drought in recent years, which reduced hydroelectric power generation in its southern provinces. To maintain the necessary power output, the country had to turn to coal. 

United States

By contrast, U.S., which is the world’s second largest consumer of coal, has seen a decrease in its usage of the fuel. According to the Institute for Energy Economics and Financial Analysis, the amount of coal that the superpower consumes each day recorded a 62% drop from 2.8 million to 1.1 million tons a day.

75% of India’s power is derived via coal-fired plants. Coal accounts for 61% of China’s power generation, even though the country is recognized as the indisputable leader in renewable energy expansion. It has been adding new projects to the grid almost as fast as the rest of the world combined in 2022 and has ambitions of becoming carbon neutral by 2060.

Annual average capacity additions by country and region, 2016-2023

See IEA report

India’s coal production rose to 893 million tons during the financial year ending March 2023, jumping nearly 15% from a year earlier. China’s raw coal production in 2023 went up by 2.9% compared with the same period in 2022.

There are no signs of a slowdown, with the IEA saying coal consumption in India and Southeast Asia is projected to grow significantly.

Coal won’t go!

But the lack of reliability of renewables means coal has still very much been a critical fallback option for the two countries.

Top five coal producing countries in the world

  • China: 4,126.0 million tonnes
  • India: 762.0 million tonnes
  • Indonesia: 614.0 million tonnes
  • United States: 523.8 million tonnes
  • Australia: 467.1 million tonnes

Five of the Greenest energy producers in the world

  • Sweden
  • Norway
  • Denmark
  • Finland
  • Switzerland

The greenest were based on these five criteria: carbon emissions, energy transition, green society, clean innovation, and climate policy.

Top countries by renewable energy production

  • China: 2,271.9 TWh (28.2% of total electricity)
  • United States: 804.8 TWh (20.5% of total electricity)
  • Brazil: 491.9 TWh (83.3% of total electricity)
  • Canada: 433.6 TWh (66.9% of total electricity)
  • India: 303.5 TWh (24.5% of total electricity)

Note: three of the world’s worst offenders of fossil fuel use are also in the top five for energy production by renewables – China, U.S. and India.

So, are things changing slowly?

Record number of fossil fuel lobbyists attend COP28 climate talks

Oil

A report published Tuesday by the Kick Big Polluters Out coalition found that at least 2,456 fossil fuel lobbyists registered to attend the two-week long summit. That’s more than almost every other country delegation, except for Brazil (3,081) and COP28 host the United Arab Emirates (4,409), the report said.

Supporters say the number of fossil fuel lobbyists attending the talks is ‘beyond justification’ and demonstrates that polluting industries are seeking to advance a fossil fuel agenda.

Others however say that Big Oil’s participation at COP28 should be welcomed.

Unabated

There’s also a debate about whether an agreement should centre on abated fossil fuels, which are trapped and stocked with carbon capture and storage technologies. Unabated fossil fuels are largely understood to be produced and used without substantial reductions in the amount of emitted greenhouse gases.

Delegates at the beginning of COP28 sealed a landmark deal to help the world’s most vulnerable countries pay for the impacts of climate disasters. To me, that suggests it is okay to carry on with business as usual because the industry can throw money at the poorer people suffering at the brunt end of climate effects.

Announcements at COP28 have sought to help decarbonize the energy sector, with nearly 120 governments pledging to triple renewable energy capacity by 2030, recent news reports show.

Whichever way we care to spin this, we are nowhere near ready to switch to renewables.

Western EV makers look to tech to compete in the world’s top EV market, China

Electric Car

Leader

China has been leading the global electric vehicle (EV) market for years, thanks to its large domestic demand, generous government subsidies, and well-established battery and electronics industry. However, the west is not giving up on the race to electrify the transport sector and reduce greenhouse gas emissions.

Europe reportedly surpassed China in terms of new EV registrations in 2020, driven by stricter emission regulations, higher consumer awareness, and more diverse and affordable models. The United States also saw a growth in EV sales, despite the Covid-19 pandemic and lower fuel prices. How are western countries and companies now competing with China in the EV market?

Global automakers such are using advanced tech such as driver-assist software to compete in the world’s largest EV market – China. ‘China’s domestic brands are leading the market in the development and implementation of advanced assisted driving systems, capitalizing on their early-entry advantages in the electric and intelligent vehicle sector‘, a recent report suggests.

BofA reportedly said it expects China to still be the world’s largest EV market in 2025, standing at 40%-45% market share.

Strategy

One of the strategies is to invest more in research and development, innovation, and collaboration. Western automakers are trying to improve the performance, efficiency, and cost of their EVs by developing new technologies and designs, such as advanced batteries, smart and autonomous features, and sustainable materials. They are also partnering with other players in the EV ecosystem, such as battery suppliers, charging network operators, software developers, and regulators, to create synergies and overcome challenges.

EV

Another strategy is to adapt to local market conditions and consumer preferences. Western automakers are aware that China is not a homogeneous market, but rather a complex and dynamic one with different regional characteristics, customer segments, and competitive landscapes. They are tailoring their products and services to meet the specific needs and expectations of Chinese consumers, such as offering more connectivity options, longer driving ranges, and lower prices. They are also leveraging their global brand reputation, quality standards, and customer loyalty to differentiate themselves from local competitors.

Niche markets

A third strategy is to diversify their portfolio and target niche markets. Western automakers are not only focusing on passenger cars, but also exploring other types of EVs, such as commercial vehicles, motorcycles, scooters, and buses. They are also targeting niche markets that have high growth potential or specific demands, such as luxury cars, sports cars, or green cars. By doing so, they can tap into new customer segments and create more opportunities.

The EV market is expected to grow rapidly in the coming years, as more countries and regions adopt policies and measures to support the transition to low-carbon mobility. China will remain a dominant player in the global EV scene, but the west will not lag behind.

How do EV’s compare to traditional vehicles?

Electric vehicles (EVs) are becoming more popular and competitive with traditional cars in terms of performance and cost. Here are some of the main differences and similarities between EVs and traditional cars:

Performance: EVs have a faster acceleration and are more efficient than traditional cars. They can reach high speeds in a short time, thanks to their instant torque rovided by the electric motor. They also have a smoother and quieter ride, as they do not have gears or transmissions. However, traditional cars perform better at high speeds and have a longer driving range than EVs. They can also handle different terrains and weather conditions better than EVs, as they have more power and stability.

Cost: EVs have a higher retail price than traditional cars, on average. But EVs may be a better financial deal for consumers over the long term. That’s because maintenance, repair and fuel costs tend to be lower than those for fossil fuel cars. EVs have fewer moving parts and fluids, which means they require less servicing and repairs. They also run on electricity, which is cheaper and cleaner than fossil derived fuels. However, traditional cars have lower upfront costs and more financing options than EVs. They also have a higher resale value and more availability than EVs, as they are more common and therefore familiar to buyers.

Environmental impact: EVs are more environmentally friendly than traditional cars, as they do not emit greenhouse gases or pollutants that contribute to air quality problems. They can also use renewable energy sources, such as solar or wind power, to charge their batteries and use fossil derived energy too.

However, EVs are not completely carbon-neutral, as they still depend on the electricity grid, which still uses fossil fuels to generate power. They also produce emissions during their manufacture and disposal processes.

Traditional cars, on the other hand, are a major source of carbon emissions and environmental damage, as they burn fossil fuels and release harmful substances into the atmosphere such as carbon monoxide and carbon dioxide. They also consume natural resources and create waste during their production and operation.

Energy generation
Fossil fuels generate power for the electric vehicle

As the EV population grows, so too will the energy requirement – and it will most likely be met moreso by fossil fuels in the short term as well as by renewables.

According to various sources, electric cars are generally cheaper to run than petrol cars in terms of fuel, road tax, maintenance, and insurance. However, the initial purchase price of electric cars is usually higher than petrol cars, so the overall cost of ownership may depend on how long you plan to keep the car and how much you drive it.

Running cost examples of electric cars vs petrol cars – (Spring 2023 data)

  • According to British Gas – fully charging a typical 60kW electric car at home costs £15.10 and gives you a 200-mile range, whereas filling up a petrol car with a similar range costs over £104. Electric cars also pay zero road tax, while petrol cars pay between £30 to £2,365 per year depending on their CO2 emissions. Electric cars also tend to have lower maintenance and insurance costs than petrol cars.
  • According to Regit – charging an electric car like the Vauxhall Corsa-E costs roughly £9.50 in electricity for a 200-mile range, while fuelling a petrol car with a similar range costs £41.63 in petrol. Electric cars also save money on road tax, maintenance, and congestion charges compared to petrol cars.
  • According to Which? – the electric Mini Cooper SE costs £8,000 more to buy than the petrol Mini One, but it costs £2,591 less to run over three years, mainly due to fuel savings. The electric car also pays no road tax or congestion charges, while the petrol car pays £155 and £11.50 per day respectively.
  • According to Auto Express – the annual running costs of an electric car are 21% less than those of a petrol car, excluding the purchase price. The average annual running cost for an electric car is £1,742, compared to £2,205 for a petrol car.
  • According to RAC – the annual running costs of an electric car like the Nissan Leaf are £1,233 less than those of a petrol car like the Ford Focus, excluding the purchase price. The electric car costs £1,062 per year to run, while the petrol car costs £2,295

Conclusion

There are many factors that affect the running costs of electric cars vs petrol cars, and different sources may have different assumptions and methods of calculation. However, the general trend is that electric cars are cheaper to run than petrol cars in most cases.

Hydrogen and hybrids are fast becoming future contenders. Watch this space…