Global Coal Consumption Hits Record High Amid Climate Goals Challenges

What's Happening?

Global coal consumption reached an all-time high of 165.1 exajoules in 2024, according to the 2025 Statistical Review of World Energy. This surge is largely driven by the Asia-Pacific region, with China accounting for 56% of global coal consumption. Despite predictions of 'peak coal,' China's coal use increased by nearly 17% since 2017, underscoring its reliance on coal for electricity and industrial activities. India also saw a significant rise in coal consumption, up nearly 45% from a decade earlier, due to rising electricity demand and favorable government policies. While coal use is declining in OECD countries, the growth in non-OECD regions, which now account for 71% of global coal consumption, is offsetting these declines. Coal production also hit a record high, with China leading the way, followed by India and Indonesia.

Why It's Important?

The continued reliance on coal poses significant challenges to global climate goals, as coal is a major source of carbon emissions. The disparity between coal consumption in developing and developed countries highlights the energy divide and complicates efforts to transition to cleaner energy sources. For many developing nations, coal remains a cheap and reliable energy source, making it difficult to shift to renewables at the same pace as wealthier countries. This situation underscores the need for scalable and affordable alternatives to coal, particularly for baseload power in emerging economies. The persistence of coal use also raises concerns about energy security and resource management, as countries navigate the balance between economic growth and environmental sustainability.

Beyond the Headlines

The infrastructure built around coal in many countries, particularly in Asia, creates a significant barrier to transitioning to cleaner energy sources. Decades of investment in coal plants and related infrastructure have entrenched coal as a key energy source, making it challenging to unwind these systems. Additionally, the geopolitical implications of coal consumption and production, especially in regions with significant reserves, could influence international relations and trade dynamics. The challenge for policymakers is to reconcile the reality of coal's continued dominance with climate commitments, necessitating innovative solutions and international cooperation to bridge the gap between ambition and reality.