In recent years, the conversation surrounding global energy consumption has increasingly focused on the urgent need to transition from fossil fuels to renewable sources of energy to combat the menacing rise in global temperatures. International agreements and climate goals emphasize the critical necessity of reducing dependency on high-carbon fuels such as coal to limit global warming to a manageable level. However, the reality of worldwide coal usage stands in stark contrast to these aspirational climate targets.
Despite the global consensus on the importance of shifting towards greener sources of energy, coal consumption reached unprecedented levels in 2024, casting a long shadow over the efficacy of global climate initiatives. A significant contributor to this surge has been the plans laid out for the development of over 850 new coal mines across the globe, with China at the forefront of both green energy advancement and coal expansion simultaneously.
Countries like Germany and the United States, often seen as champions of renewable energy, have found themselves reverting to coal to address shortfalls in wind energy production and gas supplies. This situation highlights a troubling paradox in the global energy landscape, where ambitious environmental targets are continuously undermined by the enduring reliance on coal.
A seminal decision by the U.S. Department of the Interior earlier this month underscores this persistent contradiction. In a move that would have seemed inconceivable a few years prior, the department granted approval for a new coal mine in Tennessee. This decision is part of a broader trend where, despite widespread advocacy for ending coal usage, the approval of new coal mines has become a pragmatic response to immediate energy demands.
The Global Energy Monitor recently reported that last year witnessed the slowest growth in global coal mine capacity since 2014, with new capacity standing at 105 million tons—a 46% decline from the previous year. Yet, this does not signify a downturn in coal dependence. Quite the opposite, plans are already set for a significant increase in coal capacity, with proposals for new mines, expansions, extensions, and recommissioning worldwide. These projects are anticipated to add approximately 2.27 billion tons of coal annually, with half of this capacity located in China.
China’s role in the global coal market is particularly complex and contradictory. As the world leader in wind and solar capacity, China paradoxically also consumed 56% of the world’s coal in 2024, contributing significantly to the record-high global coal demand witnessed that year. This dual identity of China as both a green energy leader and the largest coal consumer underscores the intricate challenges facing the global transition to renewable energy.
Europe’s own transition champion, Germany, has also experienced spikes in coal consumption, particularly during periods of reduced wind energy production. This reality brings to the fore the critical issue of supply reliability in energy production and the tough choices governments must make to ensure electricity supply remains uninterrupted.
The reliance on coal, despite its known environmental impacts, is a cause for concern given the United Nations’ estimates regarding the limitations needed on coal production and consumption to keep global temperature rises within 1.5 degrees Celsius of pre-industrial levels. According to the UN, achieving this goal would necessitate a 75% reduction in global coal production by 2030—a target that seems increasingly improbable given current trends.
The global landscape of coal consumption indeed tells a story of unfulfilled promises and missed targets. While investments in renewable energy sources like wind, solar, and hydroelectric power continue to grow, the reality remains that the world’s appetite for coal has not abated. This is evidenced by the 13% increase in global operating coal power capacity since 2015, the year the Paris Agreement was finalized, with a total of 259 GW of additional operating capacity being introduced.
China continues to lead the world in coal consumption while simultaneously investing heavily in renewable energy sources. Meanwhile, in the U.S., coal consumption spiked to a two-year high, despite the increase in renewable energy production. This paradoxical increase can be attributed, in part, to the fluctuating costs of gas, which reinforces the understanding that, in many cases, coal remains the most economically viable option for energy production.
The enduring reliance on coal as a primary source of energy highlights the complex challenges faced in the march towards a greener future. Despite significant investments in renewable technologies and the clear knowledge of coal’s detrimental impact on the planet, the demand for coal is anticipated to rise, driven by factors such as the growth in electricity demand fuelled by advancements in artificial intelligence.
In conclusion, the world finds itself at a crucial crossroads, where the path towards sustainable energy is fraught with obstacles, not least of which is the continued and growing dependence on coal. While the goals and aspirations of international climate agreements aim to steer us towards a greener, more sustainable future, the reality of global energy consumption patterns serves as a stark reminder of the enduring challenge that coal presents to those aims. The journey toward reducing global coal reliance remains an arduous one, with significant transformations in policy, technology, and global cooperation required to make substantial progress.
