London, December 17, 2025 – Global coal demand reached an all-time high of 8.85 billion metric tons in 2025, according to the International Energy Agency (IEA), but the world is expected to gradually reduce its reliance on coal by 2030. This decline is driven by the rapid growth of renewable energy, nuclear power, and abundant natural gas, which are increasingly displacing coal in electricity generation.

Coal remains the single largest source of electricity worldwide, making its phase-down critical to meeting global climate targets. The IEA’s Coal 2025 report highlights that while coal consumption continues to surge in some regions, structural changes in energy systems are gradually reshaping the global energy mix.

Key Regional Trends

• India: Coal use declined in 2025 for only the third time in five decades, primarily due to intense monsoons that boosted hydropower generation and lowered overall electricity demand. Despite India’s historical reliance on coal, extreme weather and renewable energy expansion are slowly reducing coal dependence.
• United States: Coal consumption increased in 2025 due to higher natural gas prices and policy support from the administration. Measures to save coal-fired plants and boost domestic coal production contributed to a temporary rise in demand.
• China: As the world’s largest coal consumer, China’s demand remained largely flat in 2025, and is expected to fall slightly by 2030 as renewable energy capacity grows. However, slower renewable integration or faster electricity demand growth could keep global coal consumption higher than projected. Keisuke Sadamori, IEA Director of Energy Markets and Security, noted:

“China, which consumes 30% more coal than the rest of the world combined, is the main driver of global coal trends.”

Global Outlook

The IEA forecasts a plateauing of coal demand in the near term, followed by a slow, gradual decline through the end of the decade. This shift reflects the combined impact of energy transition policies, market forces, and technological advancements in cleaner power generation.

Coal’s dominant role in electricity generation is increasingly challenged by renewables, nuclear energy, and natural gas, which offer lower emissions and greater flexibility. While short-term fluctuations may occur due to economic or climatic factors, the long-term trajectory points to a steady reduction in global coal reliance.

The report underscores the importance of accelerating renewable energy deployment and enhancing energy efficiency to reduce coal consumption and meet international climate targets. Analysts warn that delays in renewable integration, particularly in high-consumption markets like China, could slow the global transition and increase carbon emissions.

Implications for Climate and Energy Policy

Reducing coal dependence is essential for achieving the Paris Agreement climate goals. Governments worldwide are increasingly incentivizing clean energy adoption, phasing out subsidies for fossil fuels, and implementing stricter emissions standards. The IEA’s findings reinforce the need for coordinated action to shift the global energy mix toward more sustainable sources while ensuring energy security.