Global coal consumption will rise 1.2 percent to a record high this year, according to a report from the International Energy Agency.

This comes at a time of considerable volatility and uncertainty in global energy markets.  The IEA said the war in Ukraine dramatically changed the dynamics of coal trade, price levels and supply and demand patterns in 2022.

Coal markets are badly shaken in 2022: traditional trade flows have been disrupted, prices have risen sharply, and demand will rise by 1.2%, reaching an all-time high and exceeding 8 billion metric tons for the first time, the IEA report said.

According to the agency, fossil fuel prices have jumped significantly this year, with natural gas showing the steepest increases.

This has caused a wave of abandonment of gas, leading to increased demand for more competitively priced options, including coal in some regions.

Despite the increase in demand for coal, the picture is complicated. The IEA noted that higher coal prices, strong use of renewable energy and energy efficiency, and weakening global economic growth are holding back overall demand for coal this year.

Coal use in electricity generation will increase by just over 2% this year. Coal use in industry is actually expected to decline by more than 1%, with this decline associated with reduced steel and pig iron production.