LONDON: Global coal demand reached an all-time high in 2025, but is projected to plateau and begin a gradual decline by the end of the decade as renewable energy, nuclear power and abundant natural gas increasingly displace coal in electricity generation, the International Energy Agency (IEA) said on Wednesday.
In its latest Coal 2025 report, the IEA said global coal demand is expected to rise by 0.5 percent this year to a record 8.85 billion metric tonnes, underscoring the continued dominance of coal as the world’s largest single source of power generation. Phasing out coal remains critical for meeting global climate goals, the agency noted.
“Looking ahead, we see global coal demand reaching a plateau and then entering a very slow and gradual decline through the end of the decade,” said Keisuke Sadamori, IEA Director of Energy Markets and Security, during a press briefing.
The outlook is broadly unchanged from last year, despite varying regional trends in 2025. India’s coal consumption declined for only the third time in five decades, largely due to strong monsoon rains that boosted hydropower output and reduced electricity demand.
In contrast, coal use in the United States increased, driven by higher natural gas prices and policy support after President Donald Trump signed an executive order aimed at preventing coal plant retirements and boosting domestic coal production.
Demand in China, the world’s largest coal consumer, remained largely flat in 2025 and is expected to edge lower by 2030 as renewable energy capacity expands. However, the IEA cautioned that stronger-than-expected power demand growth or slower renewable integration in China could push global coal consumption above current forecasts.
“China, which consumes about 30 percent more coal than the rest of the world combined, remains the key driver of global coal trends,” Sadamori said.
By Reuters
