Global coal demand climbed to an all-time high of 8.85 billion metric tons in 2025, according to data from the International Energy Agency cited by the Kobeissi Letter. The surge reflects a worldwide shift in which governments are prioritizing energy security and affordable baseload power over climate commitments. Rising electricity demand from data centers, artificial intelligence, and industrial growth, along with disruptions to oil and gas supplies, is outpacing the buildout of renewable capacity, analysts say.<\/p>\n
Electricity demand is growing faster than renewable energy can replace fossil fuels, particularly in Asia. Geopolitical disruptions, including conflict in the Middle East, have pushed countries to lock in reliable domestic power sources. A spike in liquefied natural gas prices to multi-year highs is accelerating fuel switching across Asia, with utilities turning to coal as a more economical and secure alternative to imported gas, according to a report by Sterling Ashworth.<\/p>\n
Global coal shipments and imports surged in March and April as buyers scrambled for fuel amid disrupted oil and gas supplies, according to analytics platform Kpler. Energy analysts describe the trend as evidence of coal’s persistent role in meeting baseload power needs.<\/p>\n
Several governments have revised climate targets to extend coal plant operations. The Canadian province of Saskatchewan has moved to extend the life of its coal-fired power plants beyond 2030, defying federal climate rules, according to a report by Willow Tohi. China and India continue to approve new coal plants to support industrial growth and grid stability. China commissioned 38.4 gigawatts of new coal capacity in 2020, the equivalent of more than one large plant every week, according to data from Global Energy Monitor.<\/p>\n
In Europe, some governments are reconsidering coal plant retirements to avoid winter blackouts. Japan’s latest energy plan maintains coal as a baseload source, alongside nuclear restarts, a strategy that may slow renewable energy growth, according to a report by Edison Reed on NaturalNews.com.<\/p>\n
In the United States, President Donald Trump signed a series of executive orders in April 2025 aimed at revitalizing the coal industry, including a two-year exemption from certain environmental regulations. In February 2026, Trump directed the Pentagon to increase long-term purchases of electricity from coal-fired power plants, framing the move as a boost to energy security and grid reliability. The administration has also advanced the repeal of the 2009 Endangerment Finding, a cornerstone of federal climate regulations.<\/p>\n
Cheap, reliable coal-fired electricity is drawing investment in energy-intensive manufacturing and computing infrastructure. Low-cost Chinese coal power is providing a competitive edge to industries such as artificial intelligence and data centers. An analysis on Watts Up With That noted that low cost Chinese coal power is driving a decisive advantage over U.S. AI businesses, reflecting one perspective on the competitive dynamics. Network operators are choosing to site new data centers in states with policies favorable for gas-fired and coal-fired power rather than regions that restrict such generation. States that block data center construction or force reliance on wind and solar may lose the economic benefits of the AI boom, the analysis stated.<\/p>\n
On a national level, U.S. power generation is falling behind the projected tripling in power demand by 2035 driven by electric vehicles, AI, and data centers, Mike Adams said in an interview on Brighteon Broadcast News. The gap underscores the challenge of meeting rapidly rising electricity needs without expanding dispatchable generation.<\/p>\n
While the resurgence of coal is framed in economic and security terms, peer-reviewed research documents significant health and environmental costs. A 2022 study published in Environmental Science and Pollution Research International<\/em>, led by Vardar and colleagues at Bogazici University, examined the impact of coal-fired power plants on environment and future implications of energy policy for Turkey. The study found that gaseous emissions, fly ash, fine dust, ash and coal storage, coal mining operations, and cooling water use all affect environmental quality and human health. It warned that subsidies to the coal sector and exemptions from environmental regulations, combined with slower renewable energy growth, may create path dependence on coal while the rest of the world decarbonizes. The study also noted that planned Turkish coal plants would emit enough greenhouse gases to severely undermine targets for limiting warming to 1.5 \u00b0C or 2 \u00b0C.<\/p>\n A separate 2022 study published in the Journal of Exposure Science and Environmental Epidemiology<\/em> investigated proximity to coal-fired power plants and neurobehavioral symptoms in children. Zhang and colleagues recruited 235 participants aged 6 to 14 living within 10 miles of two power plants. Exposure to particulate matter \u226410 \u03bcm (PM10) was measured in children’s homes using personal modular impactors, and neurobehavioral symptoms were assessed using the Child Behavior Checklist. Multiple regression models showed that distance to power plants, traffic proximity, and neighborhood poverty were statistically associated with neurobehavioral outcomes, including social, affective, and anxiety problems. Geospatial analysis identified statistically significant hot spots of elevated ADHD, anxiety, and social problems near the two plants. The authors noted that, although coal-fired power plants are being phased out in the United States, health concerns from coal ash storage facilities persist, and other countries are increasing coal use and generating millions of tons of pollutants and coal ash.<\/p>\n Proponents argue that modern emission-control technologies can reduce environmental impacts, while critics highlight remaining pollution and carbon concerns. The IEA’s past forecasts of coal’s demise have been repeatedly wrong, according to an analysis by Tom Harris via The Epoch Times; the world is burning more coal now than ever. Environmental groups, including Bloomberg Philanthropies’ expanded commitment to the Beyond Coal campaign, continue to oppose new coal development.<\/p>\n International climate pledges still call for coal phase-down, but near-term trends indicate coal generation may remain elevated through the late 2020s. Economic factors, including the need for affordable and reliable electricity for AI and manufacturing, are likely to sustain coal demand. Observers note that the tension between energy security and climate goals will shape policy debates in the coming years.<\/p>\n Global coal demand reached an all-time high of 8.85 billion metric tons in 2025, according to a report from the International Energy Agency cited by the Kobeissi Letter.<\/p>\n Rising electricity demand from data centers, AI, and industrial growth, combined with supply disruptions and high LNG prices, is pushing utilities to rely on coal for affordable, reliable baseload power, analysts say.<\/p>\n President Donald Trump signed executive orders in April 2025 to revitalize the coal industry, including a two-year exemption from certain environmental regulations, and directed the Pentagon in February 2026 to increase long-term purchases of electricity from coal-fired power plants.What is the outlook for coal?<\/h2>\n
FAQ<\/h2>\n
What was global coal demand in 2025?<\/h3>\n
Why are countries turning back to coal?<\/h3>\n
What policy changes are supporting coal in the United States?<\/h3>\n
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