Global coal consumption smashed new highs in 2025 but is projected to decrease by 2030 as renewable energy, nuclear power, and ample natural gas sources gradually reduce coal's share in electricity generation, Reuters reported, citing the International Energy Agency (IEA) on December 17.

Phasing out coal is widely regarded as essential for meeting international climate objectives, yet the fuel continues to be the largest single source for power generation.

Coal demand is anticipated to grow by 0.5% from a year ago in 2025, reaching a historic high of 8.85 billion tonnes, according to the IEA's Coal 2025 report.

Keisuke Sadamori, IEA director of Energy Markets and Security, noted during a press briefing that global coal demand is expected to stabilize and then begin a modest, steady decline toward the end of this decade.

The agency's latest outlook remains largely consistent with last year's predictions, despite varying national trends in 2025. India recorded only its third yearly decline in coal use over the past five years, attributed to strong monsoon rains that boosted hydropower output and reduced overall electricity consumption.

In the U.S., coal consumption increased due to higher natural gas prices and following an executive order signed by President Donald Trump this year aimed at preventing the closure of certain coal-fired power plants and stimulating domestic coal production.

Coal demand in China remained relatively stable this year and is anticipated to drop slightly by 2030 as renewable energy capacity expands.