Boom and Bust Coal 2026

The 2026 report by Global Energy Monitor reveals a growing divergence between coal capacity and generation. While global capacity rose by 3.5% in 2025—driven largely by record additions in China and India—actual coal-fired generation fell by 0.6% as wind and solar met new demand. The report notes a significant slowdown in planned retirements in the US and EU, and a geographic narrowing of new coal development, with only 32 countries still proposing or building new plants. While Latin America has reached 'No New Coal' status, coal remains a tool for energy security in several major economies, often acting as a backup for renewable expansion.

• In 2025, there was a widening disconnect between global coal power capacity and actual generation; while global coal capacity increased by 3.5%, coal-fired generation declined by 0.6%.
• China and India drove the global trend of rising capacity and falling generation. In China, capacity expanded by 6% while generation fell by 1.2%; in India, capacity grew by 3.8% while generation fell by 2.9%.
• China's coal development reached record levels in 2025, with new and reactivated projects surging to 161.7 GW. The country has over 500 GW of coal-fired capacity currently in development.
• India's coal pipeline expanded for the fifth consecutive year, with 27.9 GW of new and reactivated proposals in 2025. The government aims to add 100 GW of new coal capacity over the next seven years.
• Global coal plant retirements slowed significantly in 2025, with nearly 70% of units scheduled to retire failing to do so. This included 69% of scheduled retirements in the EU and 59% in the U.S.
• The number of countries pursuing new coal development is shrinking, falling from 75 in 2014 to 32 in 2025. Latin America achieved 'No New Coal' status in 2025, and South Korea committed to a coal phaseout by 2040.
• Coal construction is becoming highly concentrated; in 2025, only 5% of global coal construction capacity was located outside of China and India.
• Indonesia's coal fleet grew by 7% in 2025, with 25% of that increase attributed to captive coal used for aluminum and nickel processing.
• In Ukraine, Russian attacks on energy infrastructure have severely damaged coal capacity. GEM estimates that while 3.5 GW of coal capacity remains operational across the country, 15.7 GW is mothballed or damaged.
• Private financial support for the thermal coal industry remains substantial, with commercial banks providing US$385 billion in loans and underwriting between January 2022 and December 2024.

APA

Global Energy Monitor (n.d.). Boom and Bust Coal 2026. https://globalenergymonitor.org/sites/default/files/2026-05/GEM-Boom-and-Bust-Coal-2026.pdf

Chicago

Global Energy Monitor. Boom and Bust Coal 2026. n.d. https://globalenergymonitor.org/sites/default/files/2026-05/GEM-Boom-and-Bust-Coal-2026.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=Boom and Bust Coal 2026 |url=https://globalenergymonitor.org/sites/default/files/2026-05/GEM-Boom-and-Bust-Coal-2026.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitorndboom, author = {{Global Energy Monitor}}, title = {{Boom and Bust Coal 2026}}, institution = {Global Energy Monitor}, url = {https://globalenergymonitor.org/sites/default/files/2026-05/GEM-Boom-and-Bust-Coal-2026.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }