- Global coal demand and production are set to reach new all time highs in 2025.
- Emerging economies continue to prioritise energy security and industrial growth.
- Policy and finance are shifting towards pragmatic energy transition pathways.
Global coal demand is expected to rise for a third consecutive year in 2025, reaching a record 8.85 billion tonnes, according to the International Energy Agency’s latest annual coal report. Coal production is also forecast to climb to a new high of 9.11 billion tonnes, surpassing the previous record set in 2024.
FutureCoal has welcomed the findings, saying they reflect growing realism across global energy systems as governments and industry grapple with volatility, rising demand and the need for reliable power supply. The report highlights coal’s continued role in energy security, industrial competitiveness and economic development, even as countries pursue emissions reduction and climate commitments.
The IEA projects that global electricity generation will increase from around 31,100 terawatt hours in 2024 to approximately 32,200 terawatt hours in 2025, an annual rise of about 3.5 percent. This growth is being driven by population expansion, industrialisation and electrification, particularly in developing and emerging economies.
Michelle Manook, Chief Executive of FutureCoal, said the data confirms what many energy markets are now acknowledging. Coal remains essential to maintaining stable power systems and supporting economic activity. She noted that energy security, affordability and reliability have returned to the centre of policy discussions after years of political marginalisation.
Regionally, demand growth is strongest in developing markets. India is expected to record the largest absolute increase in coal consumption globally through to 2030, with demand rising by around 3 percent per year and adding more than 200 million tonnes. Southeast Asia is projected to experience the fastest growth rate worldwide, exceeding 4 percent annually, as manufacturing output and electricity demand expand. China continues to account for more than half of global coal consumption, with future demand linked to electricity growth, renewable integration and investment in advanced coal technologies.
The reassessment of coal’s role is not limited to emerging economies. In the United States, coal demand is forecast to rise by 8 percent in 2025, supported by higher gas prices, slower power plant retirements and a 625 million dollar commitment from the Department of Energy to modernise the existing coal fleet.
Mike Teke, Chairman of FutureCoal and Chief Executive of Seriti Resources Group, said coal has long been a practical solution in the developing world, focused on delivering power, jobs and economic growth. He added that advanced economies are increasingly confronting the same reality, recognising that firm generation capacity is required alongside renewables to ensure resilient and affordable energy systems.
The report also points to a shift in global finance. Several net zero finance alliances have been paused or dissolved over the past year, as investors reassess exclusion based strategies and place greater emphasis on reliability, affordability and measurable performance outcomes.
FutureCoal highlighted its Sustainable Coal Stewardship framework as a pathway to align energy security with emissions reduction and development goals. The framework promotes the deployment of proven and emerging technologies across the coal value chain, including high efficiency low emissions power generation, carbon capture and storage, coal to liquids, chemicals production, waste reuse and the recovery of critical minerals from coal.
Ms Manook said the debate is no longer about when coal will disappear, but about how it is managed. She emphasised that responsible modernisation of coal assets can support energy security, reduce emissions and deliver economic value, particularly for regions such as Africa where access to reliable and affordable power remains a key development priority.
Author: Bryan Groenendaal
