(Oil Price)– Despite years of climate summits and net-zero targets, global coal consumption and production both hit record highs in 2024. According to the newly released 2025 Statistical Review of World Energy, global coal demand reached an all-time high of 165.1 exajoules (EJ), a powerful reminder of how deeply the world still relies on this carbon-intensive fuel.
The Asia-Pacific Powerhouse
At the heart of coal’s resilience is Asia. China alone accounted for a staggering 56% of global coal consumption last year, burning through 92.2 EJ. That’s an increase of nearly 17% since 2017, despite repeated predictions that China had already passed “peak coal.” The reality is that coal remains the backbone of China’s electricity system, industrial activity, and energy security strategy.
India, too, has doubled down on coal. Consumption there climbed to 21.8 EJ, up nearly 45% from a decade earlier. A combination of rising electricity demand, a lack of natural gas infrastructure, and favorable government policies continues to drive growth.
The broader Asia-Pacific region tells a similar story. Nations like Indonesia, Vietnam, and Bangladesh are rapidly expanding coal use as they build out electricity grids and industrial capacity. For these countries, coal remains cheap, reliable, and—in many cases—domestically abundant. While wealthier nations are pushing renewables, many developing economies simply can’t afford the transition at the same pace.
Decline Elsewhere—But Not Enough
Coal use continues to fall across much of the OECD. Europe, for example, saw consumption drop to 10 EJ in 2024, continuing a steady downward trend even amid energy security concerns following Russia’s invasion of Ukraine. There were some short-lived spikes in places like Germany and Poland, but the overall direction remains lower.
In the U.S., coal use came in at 9.9 EJ—well below historical highs but showing a small post-COVID rebound. America’s power sector has largely shifted to natural gas and renewables, and the long-term trajectory remains downward.
Yet these declines aren’t enough to offset growth in the developing world. Non-OECD countries now account for about 71% of global coal consumption, up from 63% just a decade ago. The energy divide is widening, and it has significant implications for both climate policy and resource security.
Production Keeps Pace—For Now
Coal production also surged in 2024, hitting a new global record of 182 EJ. China again leads the way, producing more than half the world’s coal—94 EJ in total. India continued its rapid expansion, more than doubling its output since 2006. Indonesia, too, has nearly quadrupled production over that period, largely to meet export demand from Asia.
In contrast, the U.S. and Russia hold massive coal reserves but have adopted more cautious production strategies. The U.S. produced 23 EJ in 2024, about 12% of the global total. Russia has plateaued around 9.2 EJ, in part due to sanctions and shifting market dynamics.
Non-OECD countries now supply over 60% of global coal output, up from 45% in 2006. This underscores a broader trend: the coal economy is increasingly centered in the Global South, where energy demand is still growing rapidly and alternative infrastructure is limited.
A Word on Reserves
An important context is that the world still has plenty of coal. The U.S. has the largest proven reserves, with a reserves-to-production (R/P) ratio exceeding 500 years. Russia, Australia, and India also boast deep reserves, although China’s are being depleted far more quickly—its R/P ratio is just 37 years.
Still, not all reserves are created equally. Countries like Germany and Poland have large deposits of lignite, which is less energy-dense and more polluting than higher-grade coals. Meanwhile, nations like Indonesia and Australia hold coal that is more export-friendly, giving them an edge in global markets.
The Infrastructure Trap
Part of what keeps coal in play is infrastructure inertia. Across Asia, decades of investment in coal plants, rail networks, and ports have created a system that’s hard to unwind. Coal provides steady baseload power in a way that intermittent renewables currently can’t—especially in places where battery storage and LNG terminals are lacking.
Governments are responding to surging demand with a mix of pragmatism and contradiction. China and India are investing heavily in renewables, but they’re also approving new coal projects to avoid blackouts. Subsidies and favorable mining policies persist, even as leaders make high-profile climate pledges.
Final Thoughts
Global coal use isn’t going away any time soon. To the contrary, global coal consumption still growing. The world’s wealthiest nations are moving away from it, but the momentum in Asia and the Global South is more than enough to offset those declines. For better or worse, coal remains a pillar of global energy—driven by affordability, energy security, and infrastructure lock-in.
The challenge for policymakers is to reconcile this reality with climate goals. Until the world finds scalable, affordable alternatives for baseload power in emerging economies, coal will continue to thrive. And that makes bridging the gap between ambition and reality more important—and more difficult—than ever.
By Robert Rapier
