BY COMFORT OGBONNA
Global demand for coal climbed to an all-time high in 2025 but is projected to begin easing by the end of the decade as cleaner energy sources steadily gain ground, according to the International Energy Agency. Despite mounting pressure to cut fossil fuel use in line with global climate goals, coal continues to play a dominant role in electricity generation, remaining the single largest source of power worldwide.
The agency said global coal demand is set to rise by about 0.5% in 2025, reaching a record 8.85 billion metric tons. This increase reflects continued reliance on coal in major economies, even as investments in renewable energy, nuclear power and natural gas expand. However, the IEA expects this growth to level off and gradually reverse before 2030 as alternative energy sources become more widely deployed and cost-effective.
Looking ahead, the agency said global coal consumption is likely to plateau before entering a slow and gradual decline toward the end of the decade. While the overall outlook is broadly unchanged from last year, regional developments in 2025 highlight how weather patterns, energy policies and fuel prices can still influence short-term coal demand.
In India, coal use fell for only the third time in the past 50 years, largely due to unusually strong monsoon rains that boosted hydropower output and reduced electricity demand. This temporary dip contrasts with longer-term expectations that India’s power needs will continue to grow as its economy expands.
In the United States, coal consumption increased as higher natural gas prices made coal-fired generation more competitive. The rise was also supported by policy measures after President Donald Trump signed an executive order aimed at preventing the retirement of coal plants and encouraging higher domestic coal production.
China, the world’s largest coal consumer, saw demand remain largely flat in 2025. The IEA expects Chinese coal use to edge lower by 2030 as renewable energy capacity expands and efficiency improves. Still, the agency cautioned that faster-than-expected growth in electricity demand or delays in integrating renewable power into the grid could push global coal demand above current forecasts.
China remains the central force shaping global coal trends, consuming about 30% more coal than the rest of the world combined. As a result, its energy policy choices and pace of transition will play a decisive role in determining how quickly global coal demand can move from its current peak toward sustained decline.
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