London Daily

Focus on the big picture.
Wednesday, Sep 23, 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
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×