Coal market in Southern Europe

Earlier Report Observations

The coal market in Southern Europe contracted significantly from 138.9 million tons in 2018 to 86.1 million tons in 2021. This decline was primarily driven by European climate policies and the withdrawal of production subsidies, particularly in major coal-producing countries like Germany and Poland, which reduced regional supply. Increasing competition from renewable energy and natural gas in the power sector further pressured coal consumption. The COVID-19 pandemic in 2020 amplified this downtrend by suppressing industrial and energy demand. State-owned companies such as CARBONES DEL PUERTO S.A. and S.A. HULLERA VASCO LEONESA also influenced the Spanish coal market during this period.

Market volume showed a partial rebound to 96.4 million tons in 2022. Regulatory pressures continued as the European Commission implemented stricter EU Emissions Trading System (ETS) rules, incentivizing emission reductions and affecting coal demand. The EU ETS subsequently achieved a historic 16.5% cut in fixed installation emissions by 2023, reinforcing the carbon price signal. Alongside these changes, the activated carbon segment gained traction, spurred by applications in water treatment and chemical safety regulations, with impregnated activated carbon demand rising 35% since 2021.

Through 2024, the European carbon market remained stable despite regulatory headwinds. National policies emerged to develop coal-to-liquid (CTL) plants as a means to reduce diesel imports and improve energy resilience. The activated carbon market in Europe was projected to reach $980 million, highlighting a shift toward specialized industrial and environmental applications. Global factors like renewable energy competition and international price fluctuations continued to influence the regional coal landscape.

Production coal in Southern Europe

In kind, 2017-2020, M t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Coal production in Southern Europe has declined for the third year in a row. In 2020, the region produced 76.5 million tonnes of coal, which represents a 13.2% decrease compared to 2019. Looking at the period from 2017 to 2020, production fell by 26.8%, with an average annual decline of 9.9%.

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

Exports coal from Southern Europe

Exports in kind, K t

Southern Europe's coal exports have increased for the third consecutive year. In 2020, the region exported 2 214 thousand tonnes of coal, marking a 29.4% rise compared to the previous year. Between 2017 and 2020, exports surged by 281.1%, which translates to an annualized growth rate of 56.2%.

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

From 2017 to 2020, the largest buyers of coal from Southern Europe were Morocco, accounting for 34.5% of exports in kind, Ukraine with 3.6%, and the United Kingdom also with 3.6%. Together, these three countries made up 41.7% of total exports in kind, while numerous smaller partners contributed the remainder.

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

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

Exports in value, M $ US

The market showed an unstable trend over this period. Export volumes varied significantly, with a 2.2-fold difference between the low in 2017 and the high in 2019. In 2020, coal exports from Southern Europe totaled 173 million US dollars, showing little change from 2019. The peak value was recorded in 2019 at 173 million US dollars, with the largest increase that year reaching 83.7%.

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

During 2017–2020, Southern Europe's coal exports had a diverse buyer portfolio. Morocco contributed 22.5% of exports in value terms, the United Kingdom 6.7%, and Ukraine 5.2%. Combined, these three countries accounted for 34.5% of total export value, with many other countries holding smaller but notable shares.

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

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

Imports coal to Southern Europe

Imports in kind, K t

Southern Europe's coal imports have declined for the third year in a row. In 2020, imports were recorded at 15 024 thousand tonnes, reflecting a sharp year-on-year drop of 42.0%. Over the period from 2017 to 2020, imports decreased by 66.1%, with an average annual decline of 30.3%.

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

From 2017 to 2020, the main sources for coal imports in kind were Russia, representing 32.5% of imports, Colombia with 22.8%, and the United States with 17.8%. Together, these three countries accounted for 73.1% of total import volumes.

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

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

Imports in value, M $ US

Coal imports to Southern Europe have fallen for the third consecutive year. In 2020, imports stood at 1 355 million US dollars, indicating a contraction of 50.3% compared to the previous year. Between 2017 and 2020, imports decreased by 71%, equating to an annualized decline of 33.8%.

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

In 2017–2020, the primary markets for coal imports in value terms were Russia, accounting for 29.1% of imports, the United States with 25.3%, and Colombia with 18.8%. Together, these three countries made up 73.1% of total import value.

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

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