Final answer:
Peat forms in moist, swampy conditions with limited oxygen. Over millions of years, peat can transform into coal through burial, pressure, and heat, resulting in low-grade lignite or high-grade anthracite combustion fuels.
Step-by-step explanation:
The climatic and environmental conditions for the formation of peat and coal include areas with high levels of moisture and limited oxygen, such as swamps or bogs. Peat is the partially decayed remains of plants in these environments and requires being dried before it can be used as a fuel source. Over time, the accumulation of sediment and the pressure and heat from burial can compress and transform peat into coal, specifically into lignite, a low-grade coal, and with more time and higher temperatures, into anthracite, a higher grade of coal.
Anthracite is considered a better fuel due to its higher carbon content and efficiency when combusted. The environmental conditions that are conducive to coal formation include not only swampy areas but also warm and wet climate with substantial annual rainfall and moderate temperatures. Over millions of years, plant matter is buried and subjected to geologic processes that convert it into coal.