Cleaner Coal and Climate Action


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Milton Catelin, Chief Executive of the World Coal Association discusses coal and climate action from a global perspective at the Russian Coal Expo, Kemerovo, Russia.

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Cleaner Coal and Climate Action

  1. 1. CLEANER COAL& CLIMATE ACTIONMilton CatelinChief Executive WCAUnited NationsEconomic & Social Commissionfor Asia & the PacificWORKING GROUP ON COALKEMEROVO September 2012
  2. 2. World Coal Association • Assocarboni (Italy) • PT Adaro Indonesia • Associacao Brasileira do Carvao Mineral • Anglo CoalWCA provides • • Association of UK Coal Importers Australian Coal Association • • Arch Coal BHP Billiton Energy Coalthe global voice for • Camara Asomineros • BHP Billiton Mitsubishi Alliance • CEMBUREAU •coal • Coal Association of Canada Carbones del Cerrejon Colombia • Coal Association of New Zealand • • Caterpillar Global Mining Confederation of UK Coal Producers • CO2 CRC (Australia) • ChinaCoal • German Hard Coal association • Coal India LimitedCOAL provides • • Indonesian Coal Mining Association Iranian Mines and Mining Industries • • Consol Energy Glencore International • Japan Coal Energy Center • Joy Global30% of world • • National Mining Association (USA) Shaanxi Coal Industry Bureau • Katowice Holdingsprimary energy • Svenska Kolinstituten • Mitsubishi Development • UK Association of British Mining • Peabody Energy Companies • Rio Tinto Limited41% of world • World Energy Council (UK) • SHENHUA GROUPelectricity • EURACOAL • Solid Energy NZ • Global CCS Institute • TOTAL SA • VALE68% of world steel • • UCG Association VGB PowerTech • XSTRATA Coal
  3. 3. Globally, coal has a competitive advantageCOAL LASTS 150YEARS (IEA)COAL LASTS 112YEARS (BP)~ almost 2x as long as gas (63yrs)~ more than 2x as long as oil (54yrs)• Abundant• Globally distributed• Affordable & stable in price• Safe & reliable
  4. 4. The 21st century world has been built on coal
  5. 5. Skepticism of coal’s futureGlobal Coal Demand according to the IEAWorld Energy Outlook Reference Scenario Average Coal Demand in Annual Growth 2010 (Mtoe) Growth period RatesWEO 2000 2820 1.70% 2000-2010WEO 2002 2702 1.40% 2000-2010WEO 2004 2763 1.80% 2002-2010Actual Global Coal ConsumptionActual 2010 coal consumption 3664Size of underestimation 23% - 26%Actual Average Annual Growth Rate 4.60% 2000-2010
  6. 6. The more things change, the more they stay the same
  7. 7. Coal is here to stay World primary energy demand by fuel and scenario (Mtoe) Coal demand will increase substantially over the coming decades even if all the commitments contained in the Copenhagen Accord are fully delivered. Source: IEA World Energy Outlook 2011
  8. 8. Critical enablerShare of coal in primary energy consumption (%)in industry subsectorsIncremental world primary energy demand by fuel, 2000 - 2010
  9. 9. The energy security difference: oil, gas and coal
  10. 10. China is a source of inspiration for manydeveloping countries…
  11. 11. …and a success model fuelled by coalOver the past three decades: Poverty measures for $1.25 a day in 2005 PPP (number of people, in millions, below $1.25 a• China lifted over 660 million people out day) of poverty 1981 2008• China’s steel production multiplied by 18 World 1937.8 1289• China’s cement production multiplied China 835.1 173 by almost 14• China’s connected 99% of its World exl. China 1102.8 1116 population to the grid Source: World Bank Source: World Steel Association, IEA 2012 China’s coal consumption grew by 400%
  12. 12. Reconciling rising coal consumptionwith climate change priorities Supply side efficiency is valuable … 1% increase LHV efficiency = 2–3% points decrease in CO2 emissions Reduces 1.7 GtCO2 / yr >300 MW 22% ▼coal emissions Replace: < 300 MW 5.5% ▼ global emissions an essential prerequisite > 25 years for CCS old 12 |
  13. 13. Comparative climate actions Initiatives needed to cut 2 Gt of CO2 emissions • Run the EU ETS for 53 years • Run the Kyoto Protocol 3 times • Multiply the world’s current solar power capacity by 195 • Increase the efficiency of all coal power plants from 34% to 40%
  14. 14. Investments in clean coal technologiesSupercritical and ultrasupercritical power plants in operation or under construction
  15. 15. CCT and CCS provide ¼ of the answer to climate changeContribution of different technologies to reductions in CO2 emissions of the power sector Source: IEA Energy Technology In the power sector roughly 25% of the answer to climate Perspectives 2010 change lies in coal. Effective climate policies should not dismiss this potential.
  16. 16. Global investments necessary toeffectively combat climate change
  17. 17. …but in comparison to other low-carbontechnologies CCS is seriously underfunded Public funding support commitments to CCS Public funding on low carbon demonstration •Nuclear: $45 billion annually •Renewables: $27 billion annually •CCS: $12.2 billion since 2005
  18. 18. Coal fuels wind power
  19. 19. Thank you cor . ner . stone noun .. among other things “something that is essential, indispensible, or basic: the cornerstone of democratic government is a free press “the chief foundation on which something is constructed or developed: the cornerstone of his argument was that all people are created equal”