Dissecting the Report's Findings
According to the Global Coal Mine Tracker report from research group Global Energy Monitor, the global pipeline of proposed coal mining capacity expanded by 11% in 2025. This increase was almost entirely driven by India, where proposed capacity nearly
doubled in a single year. The report specifies that planned capacity in India jumped from 329 million tonnes per annum (Mtpa) to 638 Mtpa. A significant portion of this planned expansion is concentrated in the states of Jharkhand and Odisha. This surge in proposals comes at a time when the actual commissioning of new mines globally has been slowing down and global coal demand is showing signs of plateauing, according to the International Energy Agency.
India's Pressing Energy Demands
The primary driver behind this ambitious expansion is India's urgent need for energy security to power its fast-growing economy. The government is aiming to increase domestic coal production to meet rising electricity demand, which is frequently intensified by severe heatwaves. Coal currently meets about 55% of the country's primary energy needs and fuels over 70% of its electricity generation, making it the backbone of the grid. With a target of producing nearly 1.15 billion tonnes of coal in the 2025-26 fiscal year, New Delhi is focused on reducing dependence on imports and ensuring a stable power supply for its industrial and residential sectors.
The Climate Policy Contradiction
This push for more coal appears to be at odds with India's significant climate commitments. At the COP26 climate summit, the nation announced its 'Panchamrit' goals, which include achieving 500 GW of non-fossil fuel energy capacity by 2030 and reaching net-zero emissions by 2070. While India has made remarkable strides in renewable energy—with non-fossil sources now making up a majority of installed power capacity for the first time—the actual electricity generated is still dominated by coal. In 2025, while new wind and solar capacity met all incremental power demand, coal's role as a reliable, round-the-clock power source remains critical, creating a complex balancing act for policymakers.
A Diverging Global Picture
India's move contrasts sharply with trends in many other parts of the world. Globally, the commissioning of new coal mines has fallen, with significant slowdowns in countries like China and Australia. According to energy think tank Ember, wind and solar power surpassed coal generation in the global electricity mix for the first time in 2025. However, the world is not moving in perfect unison. Five countries—China, India, Australia, Russia, and South Africa—account for 92% of all proposed coal mining capacity. This indicates a split between developed economies phasing down coal and some large emerging markets that continue to rely on it for energy security and economic growth.
The Road Ahead
The report from Global Energy Monitor warns that expanding the coal pipeline when global demand is expected to plateau could create stranded assets in the future. Researchers argue that the economic case for new coal mining weakens as the cost of renewable energy continues to fall. While India is aggressively expanding its renewable portfolio, the intermittency of sources like solar and wind means that coal is still needed for grid stability until large-scale energy storage becomes more widespread and affordable. The government's challenge is to build out a new, clean energy system capable of meeting surging demand, rather than simply replacing an old one. This makes the transition a delicate and high-stakes endeavor for India's economic future and global climate targets.
