London Daily

Focus on the big picture.
Thursday, Nov 05, 2026

Europe’s looming coal crisis

Europe’s looming coal crisis

A shortfall of the fuel would be particularly painful for Poland and Germany.

Move over gas — there’s a new energy shortage in town.

As Europe faces its worst energy crunch in decades amid the war in Ukraine, national capitals have been scrambling to shore up their gas reserves ahead of the winter. But another fuel could also soon be in short supply: coal.

Although the highly polluting fuel has earned pariah status as the EU looks to slash emissions, consumption is on the rise as a number of countries, including Austria and the Netherlands, either switch old coal-fired plants back on or boost existing capacity to save on gas.

The problem is that the EU will soon be deprived of its biggest supplier: The bloc slapped sanctions on Russian coal in April, forbidding further imports starting August 10.

That means the 2 million tons of coal it is set to receive from Russia this month will be the last such shipment, said Alex Thackrah, a senior coal analyst at the market intelligence firm Argus Media.

Add to that serious logistical challenges in sourcing and transporting the fuel from elsewhere, and "it's certainly going to be a challenge to get enough coal this winter," he said.

Indonesia, South Africa and Colombia are all potential suppliers, but EU countries will face "extremely high prices" due to the particularly high-calorific type of coal normally used across the bloc, according to Thackrah. Coal prices on the API2 Rotterdam hub, a European benchmark, hit $380 per ton last week, already a more than fourfold increase on this time last year.

The EU will also face "stiff competition" from players such as India and South Korea, which have existing coal supply agreements with many of these countries, said Mark Nugent, an analyst at the shipbroker Braemar.

Logistical issues risk complicating matters further.

Much of the EU’s coal — which arrives via ports in Amsterdam, Rotterdam and Antwerp — travels along the Rhine river by barge. Uncharacteristically high temperatures this month have lowered the river's water levels to 65 centimeters, reducing how much cargo barges can carry by two-thirds, said Thackrah.

Although power plants typically have their own stockyards, coal that can't be delivered to them is typically stored in ports to await further transport, but "inventories at European ports are nearing maximum levels," said Nugent.

According to data from coal trade association Euracoal, shared with POLITICO, some 8 million tons of coal are currently stuck in ports.


Bracing for blowback


Supply bottlenecks and shortfalls are likely to be felt most intensely in Poland and Germany.

A shortage in Germany — which made up 37 percent of the EU’s total hard coal and lignite consumption last year — would be particularly painful for the steel and chemicals industries, said Rudolf Juchelka, professor of economic geography at the University Duisburg-Essen. Power generation would also be affected, but to a lesser extent.

Juchelka also warned that the government could be forced to implement stricter energy rationing measures if Russia shuts off gas supplies or logistical issues continue to snarl up coal deliveries. “If those [effects] come together … into one big effect, there will be problems,” he said.

A spokesperson for Germany’s climate ministry said power plant operators have “assured” lawmakers they have enough coal stored up to make up for the lost Russian coal. The government has also brought in a new regulation that aims to "prioritize energy shipments” over other types of deliveries “to be prepared” in the event of a crisis, the spokesperson added.

In Poland, meanwhile, the government is engulfed in a political scandal over its failure to build up the country's coal reserves.

Some 2 million households in Poland still rely on hard coal for heating, with each burning an average of three tons per winter, according to Robert Tomaszewski, a senior energy analyst at the Polityka Insight think tank. Before the war in Ukraine, the country imported around 7 million tons of coal annually from Russia for this purpose.

With the EU's ban on Russian coal set to kick in next month, there is a now “a very huge risk that there will be not enough coal for some households,” he said, estimating that Poland will find itself short between 1 million and 2 million tons of coal over the winter.

The EU slapped sanctions on coal imports from Russia, the bloc's top supplier


According to an investigation by the Polish news outlet Onet, Prime Minister Mateusz Morawiecki was warned by his own Cabinet in early March that sanctioning Russian coal could result in a massive shortfall and was urged to set up a new strategic coal reserve. But he did not act on the warning, nor did his government carry out a formal impact assessment of the EU's proposed coal sanctions before voting in favor of them, Onet reported.

In an effort to calm the waters, Morawiecki last week announced that affected households would receive a 3,000 złoty (€631) “carbon allowance” to help buy coal, and ordered state-owned coal companies to buy 4.5 million tons of coal by August 31.

But getting these coal purchases to homes in time will be “probably impossible,” said Tomaszewski — and if supplies are low, giving money to households will achieve little.

Poland's Energy Minister Anna Moskwa admitted Friday in an interview that the government "face[s] a difficult task" in overcoming logistical issues with deliveries. But she insisted it was "not true" there would not be enough coal for the winter, citing new contracts under negotiation.

A spokesperson for the Polish climate ministry said it was working on "multidirectional solutions" to the coal issue and had introduced a new regulation that "temporarily suspends the existing quality requirements" for some types of coal sold on the market for households uses for 60 days to increase its availability.

Beyond the looming problem of this winter, a potential coal shortage could also cause trouble for the conservative government during next year's parliamentary elections, Tomaszewski warned, particularly as new polls show for the first time since 2015 that the ruling party could be unseated.

Morawiecki's “political mistake,” he said, could end up "hurting him very much politically."

Newsletter

Related Articles

0:00
0:00
Close
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
×