THE use of coal for power generation and industry must be reduced significantly if the world is to have any chance of limiting global warming to the critical threshold of 1.5°C, according an International Energy Agency study.

The report  notes that several challenges must be urgently addressed before the use of coal falls from its current high level, including the availability of renewable energy at an affordable cost, financing for the transition to cleaner energy sources, and support for local communities dependent on coal.

Analysis in the report — Coal in Net Zero Transitions — shows that the overwhelming majority of current global coal consumption occurs in countries that have pledged to achieve net zero emissions, according to a statement.

“Over 95% of the world’s coal consumption is taking place in countries that have committed to reducing their emissions to net zero,” said Fatih Birol, the IEA’s executive director. “While there is encouraging momentum towards expanding clean energy in many governments’ policy responses to the current energy crisis, a major unresolved problem is how to deal with the massive amount of existing coal assets worldwide.”

Coal is both the single biggest source of carbon dioxide emissions from energy and the single biggest source of electricity generation worldwide.

“This highlights the harm [coal] is doing to our climate and the huge challenge of replacing it rapidly while ensuring energy security,” Dr Birol said.

The IEA concludes that every future pathway for the global energy sector that avoids severe impacts from climate change involves early and significant reductions in coal-related emissions. However, there is no one single approach to putting coal emissions into decline.

Several countries stand out for their high dependency on coal and the challenge they face in transitioning to cleaner energy, including Indonesia, China, Mongolia, Vietnam, India, South Africa and Botswana.

For these economies, it will be essential for develop an approach tailored to national circumstances.

There are about 9,000 coal-fired power plants around the world, representing 2,185 gigawatts of capacity. Their age profile varies widely by region, from an average of over 40 years in the US to less than 15 years in developing economies in Asia.

Industrial facilities using coal are similarly long-lived, with investment decisions set to be made this decade that, to a large degree, will shape the outlook for coal use in heavy industry for decades to come.

Coal transitions are complicated by the relatively young age of coal power plants across much of the Asia Pacific region, the report observes.

“If operated for typical lifetimes and utilisation rates, the existing worldwide coal-fired fleet [of power plants] would emit more than the historical emissions to date of all coal plants that have ever operated.”

Dr Birol pointed to an agreement signed today, November 15, by which the government of Indonesia — which holds the presidency of the G20 — will work with the US government and financial institutions to move away from coal in a Just Energy Transition Partnership.

He described this development as “a real testament to international co-operation”.

Identifying ways to keep mine and power plant workers part of the transition is a further challenge. About 8.4m people work worldwide in coal value chains, including 6.3m in mining, processing and transportation, with a further 2.1m in power generation.

Schemes to compensate and support existing coal workers who may need assistance and retraining will be vital. So far, less than 5% of total coal sector workers are covered by comprehensive just transition policies.

Asked what one message he would give to world leaders meeting at COP27 in Egypt, Dr Birol said: “We need more Indonesias. We need advanced economies to work with emerging economies to transition from coal.”