Global Coal Demand Surges: Why Some Countries Are Still Reliant on This Fossil Fuel

A lot of coal is currently piled up at Guoyuan Port in Chongqing, China, waiting to be shipped out. This scene symbolizes the stronghold that coal still has on the global energy market.

Despite the push for cleaner energy, coal isn’t going away anytime soon. Former U.S. President Donald Trump once stated, “Nothing can destroy coal.” His words reflect the reality of coal’s continued demand. Although the U.S. is using less coal at home, it has been exporting more to meet rising international needs.

In fact, coal’s global capacity hit a record high of nearly 2,175 gigawatts this year, according to Global Energy Monitor. This number shows just how much power coal-fired plants can generate worldwide.

The shift from coal to cleaner energy sources is tough, especially with increasing demand in Asian countries. Even as Europe and the U.S. reduce their coal usage, global coal demand has surged. The International Energy Agency predicts that demand could hit a new high of 8.77 billion tonnes in 2024, with steady levels expected through 2027.

China is a major player in this story. The country saw its coal imports jump by 14.4% in 2024, reaching an all-time high of 542.7 million metric tons. This nation consumes more than 56% of the world’s coal, according to recent statistics.

To deal with potential power shortages, especially due to extreme weather, China has been stocking up on coal. In 2023, coal made up a large part of its energy supply, despite the country’s efforts to integrate more hydropower, wind, and solar energy into its mix. During dry spells, when hydropower isn’t viable, coal becomes the fallback energy source.

In India, the situation is similar. With extreme heat spiking energy demands, the country faces challenges in generating enough clean power quickly enough. Analysts note that as India invests in infrastructure and construction, sectors like cement and steel, which rely heavily on coal, are booming. The country’s steel demand is expected to grow significantly in the coming years, pushing up coal use even further.

While India is working towards a goal of 50% renewable energy by 2030, the growth of cleaner energy sources has not kept pace with demand. By the end of last year, renewables made up over 46% of India’s electricity generation capacity.

Beyond China and India, countries like Bangladesh, Indonesia, and Vietnam are also ramping up coal production and imports. Vietnam recently became Southeast Asia’s top coal importer, surpassing even Taiwan. Meanwhile, Indonesia’s coal production set new records, reaching around 831 million tons last year.

Asia’s reliance on coal is partly fueled by rising gas prices, which has led many countries to backtrack on plans for alternative gas-based power. In places where coal is cheap and abundant, there is little incentive for energy efficiency.

The demand for electricity is also on the rise due to advances in technology, especially artificial intelligence. Data centers consume vast amounts of power, which is pushing up the need for energy sources like coal. By 2030, electricity needs from these centers could exceed 35 gigawatts, more than double what was recorded just a few years ago.

As long as the world continues to see record highs in energy consumption, transitioning away from coal will remain a significant challenge. While the 2015 Paris Agreement aimed to curb global temperature rises by cutting emissions, achieving these targets can feel daunting.

Yet, there are signs of optimism. If nations stick to their commitments to increase renewable energy threefold by 2030, the decline of coal usage could gain momentum. Meanwhile, coal consumption has been decreasing in regions like Europe and Northeast Asia, which may suggest a gradual shift in energy practices.

In summary, while the world is making strides toward cleaner energy, coal remains deeply entrenched, driven by economic needs, infrastructure needs, and technological demands. Whether the transition is truly possible or not will depend on global cooperation, innovation, and commitment to sustainable practices.