Global Coal Consumption Hits Record Highs

The International Energy Agency (IEA) has released a new report forecasting that global coal consumption will reach an all-time high this year. By the end of 2025, worldwide coal use is expected to rise by roughly 0.5 percent, totaling 8.9 billion tons. This record-breaking increase is attributed in part to the United States government’s return to coal, with rollbacks of previous environmental regulations under President Donald Trump preventing the closure of several coal plants. Furthermore, higher natural gas prices in the US are making coal a more attractive energy source once again.

Despite these short-term gains, the IEA expects global coal demand to be slightly lower by the end of the decade. This anticipated decline is mainly due to electricity producers shifting to alternatives like renewables, nuclear energy, and liquefied natural gas (LNG). Currently, the power sector accounts for about two-thirds of total global coal consumption, so changes in energy generation methods are expected to play a significant role in shaping future coal demand.

The agency warns, however, that predictions for future declines in coal usage remain highly uncertain. Developments in China’s economy and energy policy could decisively impact global coal consumption, with increased electricity use or slower progress in clean energy projects potentially driving demand higher. In India, coal use is expected to grow rapidly in the coming years, fueled by rising steel production and expanding industrial activity, which will likely further increase the country’s coal needs.