Colombia coal demand remains high amid global energy transition

Despite the global energy transition toward decarbonization, international coal demand continues to reach record levels. According to the International Energy Agency (IEA), demand rose from 7,888 million tons in 2021 to a projected 8,845 million tons in 2025.

In Colombia, coal plays a critical role in the national energy matrix, accounting for 10% of installed thermal generation capacity. Proponents of the industry argue that without this capacity, the country would face electricity rationing. The impact of reduced production is noted in the Cesar Department, where the closure of two Prodeco mines resulted in a loss of 15 million tons of annual exports without decreasing global consumption.

Economic analysis suggests that current Colombian policies have discouraged extractive activities, causing coal's contribution to the GDP to drop from 4% to 3.5%. The transition is increasingly viewed not as a total replacement of non-renewables, but as a complementary integration of energy sources, as certain industrial processes like steel and cement manufacturing remain difficult to electrify.