Following a turbulent year that saw a significant drop in production, the coal industry expected to initiate a recovery in 2021.
According to the research data analyzed and published by Stock Apps, global coal production fell by 2% in 2020. In 2021, it is projected to increase by 3.5% reaching 8 billion tons (bnt). Output will grow at a compound annual growth rate (CAGR) of 2.5% in the period between 2021 and 2025 raising total production to 8.8 bnt.
In 2020, production at the top ten mining companies fell by 4.2% from 1.7 bnt in 2019 to 1.63 bnt. Based on a recent GlobalData report, it will rise by up to 6.6% in 2021, reaching between 1.68 bnt and 1.74 bnt.
Global Funding into Fossil Fuels Fell by 9% to $751 Billion in 2020
India, the world’s second-largest coal producer, is expected to lead growth in coal production in the coming years. In 2021, its production will surge from 777.7 million tons (mt) in 2020 to 827.8 mt. By 2025, output is projected to increase to 1.2 bnt.
China, Indonesia, Australia and South Africa will increase their combined output from 5 bnt in 2021 to 5.43 bnt by 2025. In 2021, China’s production will rise by 2.5% while Australia’s will decline by 4%. The US and Russia will post an increase of 9.3% and 8.4%, respectively.
According to a study by the Rainforest Action Network (RAN), overall funding into oil, gas and coal companies fell by 9% in 2020. Total funding into the sector dropped from $824 billion in 2019 to $751 billion. However, funding into the top 100 companies in the sector rose by 10% in the period in 2020.
During the period between 2016 and 2020, the world’s largest 60 banks have poured $3.8 trillion into the sector. Thirteen out of these 60 banks are US- and Canada-based, while five out of the top ten are in the US. JP Morgan Chase was the top financier, having pumped in $317 billion into the sector, 33% more than the #2.