Coal mining capacity of more than 2 billion tonnes is about to come online

SURFACE MINING

Coal mining capacity of more than 2 billion tonnes is about to come online

According to an environmental analysis, more than 2.2 billion tonnes of annual coal mining capacity is now under development, posing a threat to the Paris Agreement targets.

The majority of this capacity, 1.663 billion tonnes per year, is in the early phases of development and could be cancelled, according to the research, but the balance is already under construction.

“The prospect of a low-carbon transition puts these projects at risk of up to $91 billion USD in stranded assets,” said the report, adding “But if they proceed, without unprecedented cutbacks in global production over the next decade, proposed capacity could boost supply to over four times a 1.5°C-compliant pathway.”

It will be difficult to put a stop to so much additional coal mining capability. The majority of these projects are located in Western Europe or North America, which are both industrialised economies. Last year, China built more coal plants than the rest of the world, demonstrating the importance of coal even in mature economies like China's. Apart from China, Russia, Australia, and India will account for more than three-quarters of the new mining capacity. These four projects will add 1.75 billion tonnes of annual production capacity to the industry.

China is the clear leader, with 452 million tonnes of mining capacity under construction, followed by Russia (59 million tonnes), Australia (31 million tonnes), and India (13 million tonnes).

Environmentalists point out that new coal mines and expansion go counter to the International Energy Agency's recent roadmap to net zero emissions. To be fair, the blueprint has sparked strong opposition from oil-rich countries such as Norway and Saudi Arabia. While environmentalists may support it, it is unlikely to become a flagship document for the energy transition because it asks for the immediate halt of new oil and gas exploration.

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