What the New Report Reveals
According to the latest findings from Global Energy Monitor (GEM), a non-governmental organization that tracks fossil fuel projects, the global pipeline for proposed new coal mining capacity grew by 11% in 2025. The report identifies India as the primary
driver of this increase. While many countries are slowing down, India nearly doubled its planned coal mining capacity in the last year, from 329 million tonnes per annum (mtpa) to 638 mtpa. This surge, concentrated largely in the eastern states of Jharkhand and Odisha, means India now accounts for the vast majority of new global proposals. This is happening even as the actual commissioning of new mines globally has slowed, with a 40% drop in new capacity coming online in 2025 compared to the previous year.
The Drive for Energy Security
The push for more coal is rooted in India’s urgent need for energy to power its fast-growing economy. The government is aiming to ensure a stable and reliable electricity supply to support industrial growth, rising urbanization, and the increasing use of cooling technologies during more frequent and intense heatwaves. Coal currently fuels over 70% of India's electricity generation and is considered the backbone of its power grid, providing the continuous, dispatchable power that is not always available from weather-dependent renewables. To meet this surging demand and reduce reliance on expensive imports, the government has set ambitious domestic production targets, aiming for nearly 1.15 billion tonnes of coal production in the 2025-26 fiscal year. This strategy is seen as essential for maintaining energy security and affordability as the nation's overall electricity demand continues to climb.
A Balancing Act with Climate Goals
This expansion of coal planning creates a complex paradox, as India is also making significant strides in renewable energy. The country has already surpassed its 2030 target of having 50% of its installed power capacity from non-fossil fuel sources. In fact, recent data shows that clean energy capacity has, for the first time, overtaken that of fossil fuels. In 2025, wind and solar power met all of the country's new electricity demand growth. However, installed capacity is different from actual generation. While renewables are growing much faster, coal's share of actual electricity produced remains dominant at around 70%. This dual-track approach—aggressively building renewables while also expanding the coal pipeline—highlights the immense challenge of transitioning a massive, energy-hungry economy toward a greener future without compromising growth and stability.
How India Compares Globally
India's coal boom stands in stark contrast to global trends. While India is doubling down, other major coal producers like China and Australia saw a significant slowdown in new mine additions in 2025. The International Energy Agency (IEA) has forecast that global coal demand will plateau by 2030, and for the first time in 2025, wind and solar generated more electricity globally than coal. The geographic footprint of coal development is shrinking, with 95% of all new coal plant construction now concentrated in just China and India. This divergence positions India as a critical player whose energy choices will have an outsized impact on global climate targets, even as developed nations and some emerging economies accelerate their exit from coal.
Future Risks and Stranded Assets
This major investment in a carbon-intensive fuel source comes with significant risks. The Global Energy Monitor report warns that the rapid growth in planned mining capacity could expose producers to financial losses if coal demand weakens faster than expected. With the costs of renewable energy continuing to fall, these new coal projects run the risk of becoming "stranded assets"—power plants and mines that are no longer economically viable before the end of their expected lifetime. Critics argue that continuing to lock in decades of coal production is economically questionable when low-cost clean energy is increasingly available. The government's path forward will involve navigating this tension between meeting today's critical energy needs and making financially and environmentally sustainable choices for the long term.
