• IEA says global coal demand hits 8.85 billion tonnes this year
• Coal supplies one-third of global electricity despite renewable growth
• Agency expects demand to stabilize, then gradually decline toward 2030

Global demand for coal, the largest source of energy-related carbon dioxide emissions, continued to rise, with consumption expected to reach about 8.85 billion tonnes this year, according to the International Energy Agency (IEA). Demand has remained at historically high levels for a third consecutive year.

International media reported on Wednesday, Dec. 17, citing the IEA’s latest projections, that coal still accounts for roughly one-third of global electricity generation. It remains ahead of natural gas and hydropower, despite rapid growth in renewable energy and commitments by many governments to reduce fossil fuel use.

The increase reflects sustained growth in electricity demand and the continued use of existing coal-fired capacity. In several major economies, coal plants continue to play a central role in meeting baseload power needs. The Agency also noted that demand remains supported by industrial uses.

Coal remains a pillar of electricity systems in many countries, particularly in Asia, although trends vary among major consuming economies. In China, the world’s largest coal consumer, the IEA expects demand to remain broadly stable in 2025, but at a historically high level.

In India, consumption declined briefly this year due to stronger hydroelectric output linked to a favorable monsoon, while remaining structurally high. In the United States, demand increased as high natural gas prices made coal more competitive for power generation, according to the Agency.

Coal continues to benefit from extensive existing infrastructure, established supply chains, and, in many large consuming countries, abundant domestic resources.

At the same time, growth in global electricity demand, driven by industrialization, urbanization, and the rapid expansion of data centers and digital services, continues to outpace the deployment of low-carbon generation capacity and associated power grids.

The IEA nevertheless expects global demand for coal to stabilize in the coming years before entering a gradual decline toward 2030. This outlook is based on the expansion of renewable and nuclear power, as well as improvements in energy efficiency under currently announced energy policies.

Abdel-Latif Boureima