Global coal demand hits record high in 2025 despite climate pledges
Despite years of “green” pledges, global coal demand hit a record high this year, jumping 0.5 percent to 8,845 million tons, new data from the International Energy Agency confirms.
Despite years of “green” pledges, global coal demand hit a record high this year, jumping 0.5 percent to 8,845 million tons, new data from the International Energy Agency confirms.
Coal consumption peaked in 2025, but the IEA expects it to drop off over the next five years.
“Global coal production hit a record high of 9.1 billion tonnes, largely driven by increased output in China, India and Indonesia,” the IEA report reads.
“China retained its position as the world’s leading coal producer, maintaining output at 4 666 Mt. Coal remains the primary energy source in both China and India, making domestic production a cornerstone of their energy security strategies. Following supply shortages in 2021, both countries have ramped up coal production for several years in a row.”
The agency projects that global production will decline toward the end of the decade due to weaker output from major exporters such as Indonesia and Australia, lower prices and weaker import demand.
According to the latest data available from Statistics Canada, 3,102 Mt were produced nationwide in September.
However, the Department of Natural Resources noted that Canada’s coal production has “decreased by 32 per cent over the past decade, with thermal coal accounting for three quarters of the decline.”
Coal output from the United States has risen significantly in recent years, “driven by policy measures that improved mine economics and supported unit availability.”
Coal levels produced by the European Union are projected to remain constant at 242 Mt, focused on “lignite to meet power generation needs, although its structural decline persists.”
Meanwhile, China’s production growth has slowed “as authorities implemented summer supply cuts to manage inventories amid low prices.”
India’s production is also expected to remain relatively stable, “supported by captive and commercial mines despite seasonal disruptions.”
Well, unless a new or improved process of making steel is invented, the need for metallurgical coal (coke) will continue to rise since it is needed to make steel from pig iron. And since the demand for steel will continue to rise as nations continue to develop, so will the need for coke. Mind you, China has discovered it makes sub-standard steel, creating a problem for the construction of warships and other engines of war. So they have started “mining” sunken WWII ships for their high quality steel.
All successful economies run off of energy. The cheaper the energy, the better the economy. Just look at the failure of Germany's economy. Two consecutive years of Recession with plant closures, companies moving to countries with cheap energy and massive unemployment has destroyed Germany's economy. Cheap energy is the reason why China is eating everybody's lunch when it comes to manufacturing. Good luck Canada, you are failing too.