Pylyp Travkin: Coal is a Paradox of the Global Economy

Coal is a fuel that is not going away. It became a symbol of the Industrial Revolution, launched the industrial era, and continues to play a huge role in global energy.

Economist Pylyp Travkin notes:

“The history of coal is the history of human development. Without it, there would be no industrialization or modern energy.” And while the world is actively discussing the “green transition” today, the numbers speak for themselves: in 2022, approximately 36% of all electricity globally was generated from coal.

Why has coal held on for so long? “The reason is simple,” writes Travkin. “Coal is reliable, accessible, and its reserves are virtually inexhaustible.”

• Reserves will last another 130–150 years.
• Coal is cheaper to mine than oil and gas.
• Coal-fired power plants operate continuously, unlike solar and wind.

It’s no surprise that China and India are betting on coal—it provides up to 70% of their electricity. “For developing countries, coal is a guarantee of stability and an opportunity for accelerated growth,” the economist emphasizes.

Coal is more than just energy! “We tend to think of coal as a fuel, but it is a vital raw material for entire industries,” confirms Travkin.

• Metallurgy. “Without coking coal, steel production is impossible. More than 70% of the world’s steel is smelted using it.”
• Chemistry. “Coal is used to make not only fuel, but also fertilizers, plastics, and dyes. In China, technology for converting coal into liquid fuel is actively developing.”

Jobs and Income: “For millions of people, coal is not only energy, but also jobs,” reminds Pylyp Travkin.

• More than 7 million people are employed in coal mining and related industries.
• Coal exports generate billions of dollars for supplier countries.
• In Australia, for example, coal accounts for about 15% of foreign trade revenue.

Geopolitical factor: “Coal is not only economic, but also political,” emphasizes Pylyp Travkin.

• Russia uses coal where gas pipelines are unavailable.
• China is relying on coal to reduce its dependence on imports.
• India sees coal as the key to its energy security.

“Unlike oil and gas, coal is more evenly distributed across the world. This makes it a strategic tool for energy independence,” the expert explains.

Where is the coal industry heading? Developed countries are reducing their use of coal, but for Asia, it remains a mainstay of the economy. “The future of coal lies not in its elimination, but in new technologies,” says Travkin.

Promising areas:

• Carbon dioxide capture and storage (CCS);
• Hydrogen production from coal;
• Improved gasification and processing;
• New low-emission power plants.

Pylyp Travkin sums it up:
“Coal is a paradox of the global economy. On the one hand, it provides energy and jobs for millions of people. On the other, it is the main source of CO₂ emissions and environmental problems. The question is whether we will find a balance between development and planetary safety.”