Despite a 3.5% rise in global coal capacity in 2025, coal-fired electricity generation fell by 0.6%, revealing a nuanced shift in the world’s energy landscape driven by policy, growth in renewables, and strategic fossil fuel use in China and India.
Global coal power capacity rose again in 2025 even as electricity generated from coal slipped, underscoring a widening disconnect between plant construction and actual fuel use.
According to Global Energy Monitor, worldwide coal capacity increased by 3.5% last year, while coal-fired generation fell by 0.6%. The group said the split was most visible in China and India, where record additions of wind and solar met most of the growth in power demand and pushed coal aside, even as commissioning of new plants reached its highest level in years.
The findings point to a transition that is becoming more complex rather than more linear. Coal remains the most carbon-intensive of the major fossil fuels, and climate analysts have long warned that continued dependence on it makes emissions cuts harder to achieve. Yet the latest data suggest that in many markets coal is no longer expanding because it is needed to supply incremental electricity demand, but because governments and utilities are still treating it as a strategic backup for power security and grid stability.
China remains central to that story. The country has more than 500 GW of coal capacity in development, according to the report, a pipeline that would lock in years of further expansion during the 15th Five-Year Plan period from 2026 to 2030, despite Beijing’s pledge to reduce coal consumption. In the first half of 2025 alone, industry data cited by S&P Global Commodity Insights showed China approved 25 GW of new coal projects, while newly proposed and revived schemes reached 53 GW, the highest first-half total in more than a decade.
India, too, continued to add coal plant capacity, even as renewable deployment accelerated. Global Energy Monitor said the effect in both countries was that wind and solar were increasingly meeting new demand growth, rather than merely supplementing the existing system. That has left coal generation weaker than the scale of the project pipeline might suggest.
Christine Shearer, project manager of GEM’s Global Coal Plant Tracker, said: “In 2025, the world built more coal and used it less. Development has grown more concentrated too – 95% of coal plant construction is now in China and India, and even they are building solar and wind fast enough to displace it. The central challenge heading into 2026 is not the availability of alternatives, but the persistence of policies that treat coal as necessary even as power systems move increasingly beyond it.”
Outside Asia, the picture is beginning to change more decisively. Global Energy Monitor said only 32 countries were proposing or building new coal plants in 2025, down from 38 a year earlier and less than half the 75 countries involved in 2014. Latin America reached “No New Coal” status during the year, while South Korea has committed to a complete phaseout, adding momentum to the gradual retreat from new coal development in some regions.
Even so, retirement plans continue to slip. Nearly 70% of coal-fired units scheduled to close in 2025 remained online, including 69% of planned retirements in the EU and 59% in the US. In Europe, many delays stemmed from decisions made during the 2022-23 energy crisis, when governments and utilities became more cautious about removing dispatchable capacity. In the US, the main reason was more direct: government intervention kept ageing coal stations running through explicit orders, even as the country’s coal fleet has otherwise continued to shrink.
The US also illustrates how coal generation can rise temporarily even as capacity falls. Although American coal capacity edged down in 2025, output rose sharply, helped by a surge in electricity demand tied to data-centre growth and by higher natural gas prices after the Iran war. That said, the broader structural direction remains downward, with coal increasingly forced to compete against cheaper renewables and a changing power mix.
Global Energy Monitor’s latest report suggests the coal sector is entering a phase in which its geographic footprint is narrowing, its development is concentrated in just a few countries, and its role in power generation is becoming more constrained. The bigger question for industrial decarbonisation is whether policy will keep pace with the economics: the technologies to replace coal are expanding quickly, but the institutions and rules that still favour it are proving slower to unwind.
- https://eandt.theiet.org/2026/05/21/worldwide-growth-coal-plants-continued-2025-despite-lower-generation – Please view link – unable to able to access data
- https://globalenergymonitor.org/research/boom-and-bust-coal-2026 – In 2025, global coal power capacity increased by 3.5%, yet coal-fired generation declined by 0.6%. This trend was particularly evident in China and India, where substantial additions of wind and solar energy met most new demand, reducing reliance on coal. The report highlights a structural shift in coal usage, indicating a more durable transition away from fossil fuels. Additionally, the geographic concentration of coal development has intensified, with 95% of new coal plant construction occurring in China and India. The report underscores the need for policy frameworks that support the transition to cleaner energy sources.
- https://globalenergymonitor.org/article/world-using-less-coal-even-it-builds-more – A report from Global Energy Monitor reveals a paradox in the global energy transition: despite an increase in coal power capacity in 2025, the actual use of coal for electricity generation declined. The report identifies a structural shift in how coal is used, suggesting that the transition away from the dirtiest of fossil fuels is more durable than any short-term disruptions to energy markets. The geographic footprint of coal development is also narrowing sharply, with only 32 countries proposing or building new coal plants in 2025, down from 38 the prior year and less than half of the 75 countries doing so in 2014.
- https://globalenergymonitor.org/press-release/new-coal-drops-to-lowest-level-in-two-decades – In 2024, the world added the lowest amount of coal power in 20 years, with 44 gigawatts (GW) of new capacity coming online. This marks a significant decline from the annual average of 72 GW between 2004 and 2024. Despite this, the global coal fleet continued to grow, with a net increase of 18.8 GW, as 25.2 GW of retired capacity was offset by new additions. The report highlights a continued slowdown in global coal construction and a contraction of the coal project pipeline across most of the world.
- https://www.spglobal.com/commodity-insights/en/news-research/latest-news/coal/082525-china-approves-25-gw-of-new-coal-power-projects-in-h1-2025-commissioning-at-a-decade-high – China approved 25 GW of new coal power projects in the first half of 2025, slightly lower than the average in recent years. This underscores continued reliance on coal even as renewable capacity scales at record pace. The report indicates that newly proposed and revived projects reached 53 GW in H1 2025, the highest first-half total in over a decade, suggesting that coal project developers are still pushing fossil fuel-based energy ahead of China’s 2030 carbon peaking target.
- https://www.bloomberg.com/news/articles/2025-06-05/china-builds-most-coal-fired-plants-in-decade-for-power-security – China and India have approved the construction of the largest capacity of new coal-fired power plants in a decade, as the world’s two most populous nations seek to bolster energy security. China gave the green light to almost 100 gigawatts of new coal-fired plants in 2024, and India a further 15 gigawatts, pushing global approvals to their highest level since 2015. This development raises concerns about the ability of the world’s largest carbon dioxide emitter to meet its climate goals and could undercut the expansion of renewable energy sources.
- https://www.carbonbrief.org/rush-for-new-coal-in-china-hits-record-high-in-2025-as-climate-deadline-looms/ – Proposals to build coal-fired plants in China reached a record high in 2025, with developers submitting new or reactivated proposals for a total of 161 gigawatts (GW) of new coal-fired power plants. This surge in coal development comes even as China’s buildout of renewable energy pushed down coal-power generation and carbon dioxide (CO2) emissions in 2025, meaning many coal plants are already running at just half of their maximum capacity. The report suggests that the expansion of coal infrastructure could hinder the transition to cleaner energy if plants continue operating under political and financial pressures.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references Global Energy Monitor’s ‘Boom and Bust Coal 2026’ report, published in May 2026, indicating recent data. However, the article’s publication date is 21 May 2026, suggesting it may be based on a press release or summary of the report. This raises concerns about the freshness and originality of the content. Further verification is needed to confirm the article’s originality and independence from the press release.
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to Christine Shearer, Project Manager of Global Energy Monitor’s Global Coal Plant Tracker. While these quotes are likely sourced from the ‘Boom and Bust Coal 2026’ report, their earliest known usage cannot be independently verified. This lack of verification raises concerns about the authenticity and originality of the quotes.
Source reliability
Score:
9
Notes:
The article cites Global Energy Monitor, a reputable organisation known for its comprehensive data on global coal power. However, the article’s reliance on a press release or summary of the ‘Boom and Bust Coal 2026’ report, published just days before the article’s release, raises questions about the independence and originality of the content.
Plausibility check
Score:
8
Notes:
The article presents data on global coal power capacity and generation, consistent with known trends. However, the rapid publication of the article following the release of the ‘Boom and Bust Coal 2026’ report suggests it may be based on a press release or summary, potentially lacking independent verification and original analysis.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article appears to be based on a press release or summary of the ‘Boom and Bust Coal 2026’ report, published just days before the article’s release. This raises concerns about the freshness, originality, and independence of the content. The reliance on unverified quotes and the rapid publication timeline further contribute to these concerns. Further verification is needed to confirm the article’s independence from the press release and to ensure the accuracy and originality of the content.
