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In 2021, global coal consumption grew by 5.8% to 7,947 million tonnes (Mt) after recovering from the pandemic shock. About 5,350 Mt of coal was used for power generation and the remaining 2,597 Mt for the non-power sector.

China was the largest consumer of coal in 2021 at 4,230 Mt, an increase of 4.6%. In the first half of 2022, there was a 3% decline in coal consumption due to the renewed Covid-19 restrictions. In general, coal consumption in China is expected to remain stable at around 4,230 Mt f.y 2022 (assuming recovery in Q3 & Q4).

In 2021, India was the second largest coal consumer in the world. India consumed 1,053 Mt of coal, and about three-quarters of its coal demand was for electricity generation. Coal consumption rose in 2022 as well, with a 9% increase in the first half due to high electricity demand and a surge in natural gas prices.

With natural gas prices rising globally due to the war in Ukraine, the EU's coal consumption is estimated to have risen by 10% in the first six months of 2022, driven by the power sector. Several EU countries are extending the lifetimes of coal plants scheduled for closure, reopening closed plants or raising caps on working hours of coal plants to reduce gas consumption.

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