Post by : Saif Rahman

The International Energy Agency (IEA) reports that global coal demand has surged to its peak in 2025, but a gradual shift toward cleaner energy alternatives is underway. The agency predicts that coal consumption will stabilize and start to decline by the close of this decade as renewable energy adoption accelerates.

Despite being the preeminent source of electricity worldwide, numerous nations are striving to meet their climate objectives. By 2025, global coal demand is anticipated to increase by approximately 0.5 percent to an unprecedented 8.85 billion metric tons. However, the IEA highlights a long-term trend indicating a gradual decrease in coal utilization.

This transition is fueled by the swift growth of renewable sources, such as solar and wind, along with consistent advancements in nuclear energy and an ample supply of natural gas. As these alternatives become more reliable and economically viable, they are increasingly replacing coal in electricity generation.

Different regions are experiencing varying trends in coal usage for 2025. In India, coal consumption saw a decline for only the third time in fifty years, primarily due to heavy monsoon rains boosting hydropower output and lessening the energy demand from coal plants. Conversely, in the United States, coal consumption increased as rising natural gas prices rendered coal more competitive, coupled with supportive government policies allowing for the continued operation of coal facilities.

China, being the largest consumer of coal globally, exhibited stable demand levels. China’s coal usage is approximately 30 percent greater than that of the rest of the world combined. The IEA anticipates a slight drop in China’s coal requirement by 2030, provided that renewable energy development continues; however, increases in power demand or delays in renewable installations could modify this forecast.

The IEA emphasizes that any forthcoming reduction in coal consumption will occur gradually rather than abruptly. Coal will retain its importance in the global energy landscape, especially in developing regions; however, the record levels witnessed in 2025 may signify a critical juncture as the global energy framework transitions towards cleaner, more sustainable solutions.

#Business News