Coal remains a vital, if unloved fuel. In Europe, during a time of unprecedented turmoil in the energy market, coal and lignite replaced lost supplies of Russian pipeline gas. Even as it is phased out, coal will continue to contribute to a reliable and secure energy mix, both domestically mined coal and lignite and imported coal from the diverse and competitive international market. This publication aims to provide readers with an overview of the European coal sector in the context of a just transition towards cleaner, alternative sources of energy. A chapter on the international coal market puts the EU’s modest use of coal into perspective while showing coal’s importance for electricity generation in many leading economies.

In the European Union, energy policy remains a national competence under Article 194 of the Treaty. Our publication is accordingly structured around a series of national profiles: all the EU member states, plus members and observers of the Energy Community. EURACOAL collected data from its members, as well as from Eurostat and other sources, to present a picture of each country’s use of coal (and most countries do use some coal). As the energy mix shifts towards cleaner energy sources, national governments must strike a balance between fulfilling the Paris Agreement goals to reduce greenhouse gas (GHG) emissions while ensuring secure and affordable energy for citizens and enterprises.

Across Europe, it is undoubtedly Ukraine that faces the biggest challenge. The heroic efforts of Ukrainians working in the energy sector, including coal miners and power plant staff, to “keep the lights on” reminds us of the crucial importance of energy to a functioning economy and society. But the war also impacts EU member states: in 2022, many had to replenish their coal stocks to prepare for a winter when coal might be the most secure fossil fuel. Countries such as France, Germany and the Netherlands increased their available coal-fired power generation capacities by keeping coal power plants operational for longer than planned. On top of that, coal importers had to find new sources of supply after the EU banned Russian coal imports. Despite these seismic disturbances to a well-functioning energy market, the EU has not suffered any serious energy shortages thanks to the policy measures put in place at national and European levels, and the quick response of industry to secure new supplies and reduce demand.

Against this geopolitical backdrop, the just transition process continues. During the 9th legislature of the European Parliament, most of the European Commission’s “Fit-for-55” proposals were enacted. These aim to reduce greenhouse gas emissions by 55% by 2030 and mean significantly higher carbon prices under the EU emissions trading system (ETS), as well as stricter pollution control measures. To avoid any socio-economic dislocations due to the rapid switch away from fossil fuels, the EU budget for 2021 2027 includes a dedicated Just Transition Mechanism with much-needed support for the coal regions. This money is being allocated to projects that alone cannot replace all the lost jobs but are helping to regenerate the regions with new activities. Looking ahead, the effectiveness of this support should be evaluated and lessons drawn for a “Just Transition Mechanism 2.0” under the next multi-annual financial framework covering 2027 2033. The challenge to replace thousands of skilled, well-paid jobs in the coal value chain will not go away in 2027!

The new Critical Raw Materials Act recognises the importance of coking coal in the manufacture of products for a green economy. For example, the steel in a 15 MW wind turbine requires more than a thousand tonnes of coking coal for its production. To achieve net-zero GHG emissions in the EU by 2050, forecasts include 770 GW of new onshore and 280 GW of new offshore wind turbines – requiring perhaps 120 million tonnes of steel and 80 million tonnes of coking coal. Luckily, the EU has several coking coal mines! Other critical raw materials are also of concern to policymakers. Hence, spoil heaps at European coal mines are being re assessed as a source of rare earth elements and other scarce metals.

During the energy transition in Europe, we should make use of all our own resources. Also, we should not ignore the role of clean coal technologies to reduce emissions, especially in countries elsewhere in the world that will continue to use coal for decades to come. Cutting-edge research in the coal sector is delivering new ways to reduce emissions, repurpose coal assets and restore landscapes. The EU Research Fund for Coal and Steel, operating under a modernised legal basis since 2021, plays a key role here. The fund currently supports several “big-ticket” projects in the coal regions that showcase how coal companies can transform their operations as part of a net-zero economy. Those companies, represented by EURACOAL, promise that the coal industry will continue to strive for a cleaner, brighter future.