LONDON : The IEA’s Coal Outlook 2025 report revealed that global coal demand rose by 0.5 per cent this year, reaching a record 8.85 billion tonnes, despite mounting pressure to phase out the fuel to meet global climate targets. Coal remains the single largest source of electricity generation worldwide, underlining the challenge facing energy transition efforts.
“We expect global coal demand to stabilize in the near term, then begin a slow and gradual decline until the end of the decade,” said Keisuke Sadamori, Director of Energy Markets and Security at the IEA, speaking at a press conference. The overall forecast remains broadly unchanged from last year, though regional trends in 2025 showed notable differences.
In India, coal consumption declined for only the third time in the past 50 years, driven by heavy monsoon rains that boosted hydroelectric output and lowered overall electricity demand. In contrast, coal use in the United States increased, supported by higher natural gas prices and an executive order signed by President Donald Trump aimed at preventing the closure of coal-fired power plants and boosting domestic coal production.
China, the world’s largest coal consumer, saw demand largely stabilize in 2025. The IEA expects Chinese coal use to decline slightly by 2030 as renewable energy capacity continues to expand. However, the agency cautioned that a sharp rise in electricity demand or slower-than-expected renewable integration in China could push global coal demand above current projections.
The IEA's Coal Outlook 2025 report indicates that global coal demand reached a record 8.85 billion tonnes this year, despite efforts to phase it out for climate goals. While coal remains the largest electricity source, demand is expected to stabilize and gradually decline by 2030, with regional variations influencing the pace of this transition.