India became the second country, alongside China, to burn over a billion tonnes of coal in 2022, driven by robust economic growth. According to the International Energy Agency's latest Coal Market Update, coal demand in India increased by approximately 5.5% in the first half of 2023, supported by strong economic growth and heavy reliance on coal. While growth in the power sector is expected to slow down slightly in the second half, the total increase for the year is projected to be 5%, amounting to 1.2 billion tonnes. In 2022, India's coal consumption had already reached 1.1 billion tonnes.

The report highlights that China and India together will account for 70% of global coal consumption, which is twice the amount consumed by the rest of the world. The increasing demand for coal in Indonesia and other Southeast Asian countries will offset the decline in coal consumption observed in the United States and Europe.

The Asian continent's dominance in coal consumption is steadily growing, and by 2024, China, India, and the ASEAN region are expected to represent 76% of the global share. In contrast, the share of coal consumption in the United States and the European Union, which was at 40% three decades ago, is projected to decrease significantly to 8% by 2024.

Despite a weaker global economy, global coal demand is expected to surpass the record level achieved in 2022, which exceeded 8.3 billion tonnes. Coal remains more accessible and relatively cheaper than gas in many regions, leading to a shift towards coal-fired generation. Weak nuclear power and hydropower production further supported the increase in coal-based electricity generation, accounting for 36% of the world's total electricity generation in 2022, up by one percentage point compared to 2021. Additionally, the final demand figures for coal in 2021 were revised upward, particularly in China, which contributed to the increased demand in 2022, starting from an even higher base.