Global coal consumption is expected to reach a record high in 2025, according to the International Energy Agency, driven in part by strong policy support from the Trump administration. The IEA said global demand is on track to rise 0.5 percent this year to 8.85 billion tonnes, the highest level ever recorded.
China and India traditionally fuel growth in coal use, but demand remained flat in China and declined in India.
Global coal demand has reached a plateau & is forecast to edge down through the end of this decade as competition intensifies with other power sources
— International Energy Agency (@IEA) December 17, 2025
But developments in China’s electricity sector will remain key for the sector's prospects
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The IEA attributed India’s drop to an early and intense monsoon that boosted hydropower generation. Coal demand in China is expected to gradually ease over the next five years.
Coal demand reaches new annual record as US output rises https://t.co/8wF6haFlA2
— FT Energy (@ftenergy) December 17, 2025
In contrast, US coal consumption is projected to rise 8 percent in 2025.
The increase reflects higher natural gas prices and a slowdown in coal plant retirements following federal policy support under President Donald Trump, the IEA said.
Despite the short-term rebound, the agency expects US coal demand to resume a gradual decline through 2030 as renewable energy expands.
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TIPP Staff
