Coal Exports and Power Generation Soar to Record Levels Worldwide in 2023

In 2023, global electricity generation from coal reached record highs, surpassing 8,295 terawatt hours (TWh) through October. This marks a 1% increase from the same period in 2022 and represents the highest coal-fired electricity generation on record, as reported by environmental think tank Ember. Simultaneously, thermal coal exports exceeded 1 billion metric tons for the first time, growing by 6.6% from 2022, reaching 1.004 billion metric tons for the entire year, according to ship-tracking data from Kpler.

Emissions from coal-fired electricity generation also reached new peaks, totaling over 7.85 billion tons of carbon dioxide and equivalent gases through October 2023. This represents an increase of approximately 66.7 million tons compared to the same period in 2022, as highlighted by Ember. Despite global efforts to transition away from fossil fuels, coal's persistent use in power systems underscores its continued significance in energy production.

The concentration of coal mining, exports, and power generation using coal remains primarily in Asia. Many regions, including Europe and North America, have adopted measures to phase down coal use for power. However, the sheer volume of coal extraction, exports, and consumption in power plants continues to rise. Indonesia emerged as the top thermal coal exporter in 2023, shipping a record 505.4 million tons, accounting for over half of all thermal coal shipments within the year.

Australia, the second-largest thermal coal exporter, shipped 198 million tons, a 7% increase from the previous year. Other significant exporters included Russia, South Africa, and Colombia, collectively shipping 103 million tons, 60 million tons, and 51 million tons, respectively.

On the import side, China led as the largest thermal coal buyer, receiving a record 325 million tons, an increase of 109 million tons from 2022. India and Japan followed as major importers, receiving 172 million tons and 109 million tons, respectively. Other notable importers included South Korea, Taiwan, the Philippines, and Vietnam, with strong double-digit percentage increases in year-on-year imports.

In major coal-importing nations, coal-fired electricity generation increased in China, India, the Philippines, Turkey, and Vietnam. While Japan and South Korea experienced declines in coal-fired output, these reductions were nearly offset by the increase in Vietnam alone.

Globally, around 82% of all coal-fired electricity generation occurred in Asia in 2023, up from an average of approximately 75% in 2019, according to Ember. Despite ongoing efforts to reduce coal consumption in other regions, the total volumes of Asia's coal imports and consumption for power generation are expected to continue climbing. Major economies such as China, India, Vietnam, the Philippines, and Indonesia remain reliant on affordable power sources for industrial competitiveness, even as they commit to substantial increases in renewable energy deployment. The trajectory of coal use and emissions in these countries indicates that, in the near term, they may continue to contribute to rising global coal consumption and emissions.

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