Coal market in Europe

Earlier Report Observations

Between 2018 and 2024, the European coal market contracted significantly, with its volume falling from 1 305 million tonnes to 813 million tonnes by 2022. This decline was initially driven by structural policy shifts, including the announced phase-out of coal mining in Germany and the end of production subsidies, which reduced domestic output. The downward trend accelerated in 2020 when COVID-19 lockdowns curtailed electricity demand, leading to a sharp drop in coal consumption across the region.

The market experienced a partial rebound in 2021, influenced by record coal consumption in China which tightened global supply and raised prices, and by increased coal-fired power generation in Germany to compensate for other sources. This recovery was soon challenged by the EU's ban on Russian coal imports from April 2022, following the war in Ukraine. Major energy firms like RWE, Uniper, and EnBW had to rapidly reorganize their supply chains. Despite the ban and high global prices, coal use for power generation rose temporarily in 2022 as governments activated reserve plants to ensure energy security during the crisis.

From 2023, the market's structural decline resumed. Coal's share in the power mix fell to 26.1% as renewable energy sources expanded to supply 56% of electricity. Lower economic activity reduced electricity demand, further decreasing coal imports, which reached 97 million tonnes in 2024. Throughout the period, the tension between long-term climate goals and short-term energy security defined the market, with geopolitical events and global price signals causing significant fluctuations in trade flows.

Production coal in Europe

In kind, 2017-2020, M t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Coal production in Europe has declined for the second year in a row. In 2020, Europe produced 789 million tonnes of coal, representing a 12.7% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 17.9%, with an average annual decline of 6.4%. The highest production level was recorded in 2018 at 1 246 million tonnes, which marked a significant increase of 29.7% from the year before. However, the sharpest drop occurred in 2019, when production plummeted by 27.4%.

Annual dynamics of production in Europe in kind, 2017-2020, M t

In value, 2017-2020, B $ US

Europe's coal production value has also declined for the second consecutive year. In 2020, the output was valued at 68.1 billion US dollars, reflecting a steep 38.4% decrease from the previous year. Over the 2017-2020 period, production value dropped by 41.7%, translating to an average annual decline of 16.4%. The peak value was recorded in 2018 at 181.5 billion US dollars, which saw a substantial increase of 55.6% from the prior year. The largest decline occurred in 2019, with a 39.1% drop.

Annual dynamics of production in Europe in value, 2017-2020, B $ US

Exports coal from Europe

Exports in kind, M t

Europe's coal exports have increased for the third consecutive year. In 2020, exports reached 171.0 million tonnes, up by 10.9% compared to the previous year. From 2017 to 2020, exports grew by 24.9%, with an average annual growth rate of 7.7%.

Annual dynamics of product's exports from Europe in kind, 2017-2020, M t

Between 2017 and 2020, Europe's coal exports in kind were distributed across multiple countries without a clear dominant partner. China accounted for 13.5% of exports, South Korea for 12.1%, and Japan for 8.5%. Together, these three countries represented just 34.1% of total export flows, indicating a fragmented market structure.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Europe in kind, 2017-2020

Exports in value, M $ US

Europe's coal export value has declined for the second year in a row. In 2020, exports were valued at 14 752 million US dollars, down by 21.7% from the previous year. Over the 2017-2020 period, export value decreased by 11.3%, with an average annual decline of 3.9%. The highest value was recorded in 2018 at 20 150 million US dollars, which saw an increase of 21.2% from the year before.

Annual dynamics of product's exports from Europe in value, 2017-2020, M $ US

The partner structure for Europe's coal exports in value terms remained fragmented from 2017 to 2020. South Korea accounted for 12.8% of exports, China for 12.1%, and Japan for 9.6%. Combined, these three countries represented only 34.5% of total export flows, with no single country holding a dominant share.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Europe in value, 2017-2020

Imports coal to Europe

Imports in kind, M t

Europe's coal imports in kind have declined for the third consecutive year. In 2020, imports stood at 121.0 million tonnes, which is 24.5% lower than in 2019. Between 2017 and 2020, imports decreased by 41.7%, equating to an average annual decline of 16.5%.

Annual dynamics of product's imports to Europe in kind, 2017-2020, M t

From 2017 to 2020, Europe's coal imports in kind were sourced from a variety of partners without a dominant supplier. The United States accounted for 14.3% of imports, Kazakhstan for 12.3%, and Colombia for 9.3%. Together, these three countries made up only 35.9% of total import flows, reflecting a diversified import structure.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Europe in kind, 2017-2020

Imports in value, M $ US

Europe's coal import value has declined for the second consecutive year. In 2020, imports were valued at 12 007 million US dollars, down by 40.9% from the previous year. Over the 2017-2020 period, import value fell by 52.7%, with an average annual decline of 22.1%. The peak value was recorded in 2018 at 26 640 million US dollars, which saw a modest increase of 5.0% from the year before.

Annual dynamics of product's imports to Europe in value, 2017-2020, M $ US

Between 2017 and 2020, Europe's coal imports in value terms showed no single dominant market. The United States accounted for 19.7% of imports, Australia for 15.4%, and Colombia for 8.0%. Together, these three countries represented 43.1% of total import value, while many smaller partners each held modest individual shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Europe in value, 2017-2020