Global coal consumption is projected to reach an all-time high in 2025, according to the International Energy Agency, driven partly by renewed policy support for the coal sector in the United States. In its latest annual assessment of the global coal market, the Paris-based agency said worldwide demand is expected to increase by around 0.5 percent this year, pushing total consumption to a record 8.85 billion tonnes, despite longer-term forecasts pointing toward a gradual decline later in the decade as cleaner energy alternatives expand.
Traditionally, China and India have been the primary engines of growth in global coal use, as both countries work to meet rising electricity demand from expanding populations and industrial activity. However, the IEA noted a notable shift in 2025, with coal demand remaining broadly flat in China and declining in India. China, the world’s largest coal consumer, is expected to see a modest reduction in coal use over the next five years as renewable energy capacity and energy efficiency measures continue to expand.
In India, coal demand fell partly due to an unusually early and strong monsoon season, which boosted hydropower generation and reduced reliance on coal-fired electricity. The IEA highlighted that this marked only the third time in the past 50 years that India’s coal-based power generation declined, underlining the significance of the change in energy dynamics during the year.
By contrast, the United States recorded a noticeable rebound in coal consumption. The IEA attributed this increase to a combination of higher natural gas prices and federal policy measures that slowed the retirement of coal-fired power plants. According to the agency, U.S. coal consumption is expected to rise by around eight percent in 2025, reversing years of decline and providing a temporary lift to the industry.
Coal remains the largest single source of carbon dioxide emissions from human activity, making its continued use a major concern for global climate goals. While the IEA expects coal demand to peak and gradually decline over the rest of the decade as renewable energy, nuclear power, and other low-carbon technologies gain ground, the report underscores how national policies, fuel prices, and weather patterns can still significantly influence short-term coal consumption trends worldwide.
