IEA Sees Global Coal Use Peaking This Decade Despite 2025 Record

IEA Sees Global Coal Use Peaking This Decade Despite 2025 Record
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Global coal demand hit an all-time high in 2025 but is expected to begin a gradual decline by the end of the decade as cleaner energy sources expand, Reuters reported. According to the International Energy Agency (IEA), coal consumption is forecast to rise by 0.5% this year to a record 8.85 billion metric tons before leveling off and slowly decreasing toward 2030.

The IEA said the growing deployment of renewable energy, nuclear power and ample natural gas supplies is expected to reduce coal’s role in electricity generation, even though it remains the world’s largest single source of power. Transitioning away from coal is seen as essential to meeting global climate goals.

Regional trends varied in 2025. India recorded only its third decline in coal use in 50 years, largely due to strong monsoons boosting hydropower and reducing electricity demand.

In the United States, coal consumption increased amid higher gas prices and policy moves aimed at keeping coal plants operating. China’s coal demand remained broadly flat and is projected to fall slightly by 2030 as renewable capacity expands, though the IEA warned that slower clean-energy growth could alter the outlook.