Global Coal Use Hits Record in 2025 but Faces Slow Decline by 2030, Says IEA

Post by : Saif Nasser

Global coal demand reached its highest level in 2025, but the world is slowly moving away from the fuel, according to the International Energy Agency. The agency said coal use is expected to level off and begin a gradual decline by the end of this decade as cleaner energy sources expand.

Coal remains the single largest source of electricity worldwide, even as many countries try to meet climate goals. In 2025, global coal demand is estimated to rise by about 0.5 percent to a record 8.85 billion metric tons. Despite this increase, the IEA said the long term trend now points toward a slow reduction in coal use.

The shift is being driven by rapid growth in renewable energy such as solar and wind, along with steady support for nuclear power and strong supplies of natural gas. These energy sources are becoming more reliable and cost effective, making them attractive alternatives to coal for power generation.

Coal trends in 2025 varied across major economies. In India, coal use declined for only the third time in the past five decades. Heavy monsoon rains boosted hydropower output and reduced electricity demand from coal plants. In contrast, coal consumption in the United States rose as higher natural gas prices made coal more competitive, and government policies supported the continued operation of coal plants.

In China, the worlds largest coal consumer, demand remained mostly flat. China uses about 30 percent more coal than the rest of the world combined. The IEA expects Chinas coal demand to fall slightly by 2030 as renewable energy capacity continues to grow, though faster power demand or delays in renewable projects could change this outlook.

The IEA said the coming decline in coal use will be slow rather than sudden. Coal will still play a role in the global energy system, especially in developing countries. However, the record demand seen in 2025 may mark a turning point as the global energy mix gradually shifts toward cleaner and more sustainable sources.

#Market #Business News #Business #Business & economy #Market Analysis