Key Takeaways
The International Energy Agency (IEA) reports that 2024 will break a world record for coal use.
China, India, and Indonesia are mining more coal than ever, and nations are consuming more of it than ever—except for Europe and the United States, where coal consumption is down 12% and 5%, respectively.
India is about to double the coal consumption of the United States and Europe combined as early as this year, and China is already consuming 30% more coal than the rest of the world combined.
China and India are using coal to make things to export to the West and provide a rising standard of living for their people.
Despite Western organizations, banks, and NGOs’ efforts, coal continues to break new records for consumption and production.
According to the International Energy Agency (IEA), coal consumption hit another new record last year—8.77 billion metric tons—due to soaring coal use by China and India. Global coal demand is expected to grow by 1% in 2024—down from 2.4% growth in 2023. Although industrial consumption increased, the power sector has been the main driver of coal demand growth, with electricity generation from coal set to reach an all-time high of 10,700 terawatt-hours in 2024. At the regional level, coal demand in China is expected to grow by 1% in 2024, reaching a record of 4.9 billion metric tons, and India is expected to see demand growth of over 5% to reach 1.3 billion metric tons. Coal demand continues to fall in the European Union and the United States, declining by 12% and 5%, respectively in 2024, according to the IEA.
Global coal production is also expected to reach an all-time high in 2024, surpassing 9 billion metric tons. The three largest coal producers—China, India, and Indonesia—reached new records, with China’s production, which accounts for half of global production, increasing by 1% in 2024.
China
According to IEA, China consumes 30% more coal than the rest of the world combined and will continue to define global trends. A third of all the coal consumed worldwide is burned in power plants in China, making the country’s electricity sector the main driver of global coal markets. China’s coal fleet alone is larger than the entire U.S. generation fleet of all power plants. Since 2021, electricity demand in China is growing at a faster rate on average than its GDP. Two major drivers underpinning power demand growth in China are the electrification of services previously provided by other fuels, such as transportation and industrial heat, and emerging industries, such as data centers and artificial intelligence. Burning coal also allows China to continue manufacturing, and exporting, numerous items—from solar panels, batteries, and iPhones to clothing and jewelry—that Western consumers want. China is the world’s largest auto exporter.
India
Despite increasing renewable electricity generation, India is expected to see the most significant increase in coal use in the coming years, driven by consumption from the power sector and industry. In 2024, India’s coal use grew by over 5%, as mentioned above. As of 2025, the amount of coal consumed in India is almost 3 times that of the United States. Additionally, the United Kingdom closed its last coal plant in September 2024 and has converted its largest plant to run on wood pellets, most of which are imported from the United States. Like China, India is burning coal to export items that Western countries want—including smartphones, airplane parts, and wind turbines. The nation’s exports are likely to rise to $900 billion in 2023-24 from $770 billion the previous year.
Due to policies to reduce coal imports, the government is incentivizing production from public companies (mainly Coal India), captive, and commercial producers. As a result, IEA sees India’s coal production rising by over 7%. India wants to eventually phase out coal imports to bolster energy security by removing the blending mandate for imported coal in thermal power plants, which discourages domestic coal in favor of imports. Beneficiation of coal involves removing impurities to enhance its calorific value per unit. India has sufficient domestic coal resources to phase out coal imports.
According to CNBCTV18, in FY24, India’s coal production rose by 11.65% to reach 997.26 million tons, up from 893.19 million tons in FY23. In FY25, India’s ministry wants production to reach 1,080 million metric tons, exceeding the peak production year of U.S. coal output in 2008 when coal production reached 1.06 billion metric tons. Domestic coal production is projected to reach 1.5 billion metric tons by FY30, growing at 6 to 7% annually.
Financial Companies Used Their Leverage to Reduce Coal Output
In the United States, it seems that environmental, social, and governance (ESG) policies have also helped to lower coal production and demand. According to Just the News, BlackRock, State Street, and Vanguard had substantial investments in all publicly traded coal companies and allegedly used that leverage to reduce coal production, reaping huge profits from it. Texas Attorney General Ken Paxton, along with 10 other state attorney generals, filed a lawsuit against BlackRock, State Street Corporation, and Vanguard Group, three of the largest investors in the world.
The lawsuit claims that the three asset managers purchased large amounts of stock in nearly every major publicly traded coal producer in the United States. The defendants allegedly coordinated with one another, engaged with the management of the coal companies in which they invested, and used their voting power to intentionally limit production and restrict the coal supply. The lawsuit argues that smaller coal producers could not increase production to meet demand and secure a larger market share due to limited resources and financial capacity. Additionally, the ESG policies of banks reportedly made it harder for these smaller competitors to secure the necessary funding for expansion.
Conclusion
Despite years of cheerleading for coal demand and production to be down, IEA has reported that it will hit a new record in 2024, growing 1% over 2023. China and India are not reducing their coal generation or production despite promises made to the Paris Accord. Burning coal for electricity production allows these countries to create products for export that Western nations want and to grow their economies. Europe and North America are the only major areas reducing their coal generation by prematurely retiring their coal plants through onerous government regulations and policies and reducing coal production in tandem, in some cases, with the help of ESG firms. According to the IEA, burning coal accounts for 40% of global energy-related carbon dioxide emissions and it looks like that share will remain for some time.
