Published by Global Banking & Finance Review®
Posted on December 17, 2025
2 min readLast updated: January 20, 2026
Global coal demand reached a record high in 2025 but is expected to decline by 2030 as renewables and natural gas reduce its dominance, according to the IEA.
LONDON, Dec 17 (Reuters) - Global coal demand reached a record high in 2025 but is expected to decline by 2030 as renewables, nuclear power and abundant natural gas squeeze its dominance in power generation, the International Energy Agency said on Wednesday.
Weaning the world off coal is considered vital to achieving global climate targets, but the fossil fuel remains the single biggest fuel to make electricity.
Coal demand is forecast to rise 0.5% in 2025 to a record 8.85 billion metric tons, the IEA's Coal 2025 report showed.
"Looking ahead, we observe that the global coal demand plateaus and will start a very slow and gradual decline through the end of the decade," Keisuke Sadamori, IEA director of Energy Markets and Security, said in a press briefing.
The forecast was little changed from last year’s outlook despite observing different trends in 2025. India's coal use declined for only the third time in five decades due to intense monsoons which increased hydropower and depressed electricity demand.
In the United States, consumption rose on higher gas prices and after President Donald Trump this year signed an executive order to save coal plants that were likely to be retired and to boost coal production.
Demand in China, which is the world's largest coal consumer, was largely flat this year, and is expected to fall slightly by 2030 as renewable capacity increases.
However, faster electricity demand growth, or slower renewable integration in China, could push global demand above forecasts, the report said.
"China... which consumes 30% more coal than the rest of the world put together, is the main driver of global coal trends," Sadamori said.
(Reporting By Susanna Twidale; Editing by Sharon Singleton)
Coal demand refers to the quantity of coal that is consumed for energy production, industrial processes, and other uses. It is a critical factor in assessing energy needs and environmental impact.
Renewable energy sources are energy sources that are replenished naturally, such as solar, wind, hydro, and geothermal energy. They are considered more sustainable compared to fossil fuels.
Nuclear power is a form of energy produced through nuclear reactions, typically fission, where atomic nuclei are split to release energy. It is used for electricity generation and is considered a low-carbon energy source.
Natural gas is a fossil fuel composed mainly of methane. It is used for heating, electricity generation, and as a fuel for vehicles. It is often seen as a cleaner alternative to coal.
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