Boom and Bust Coal 2025

In 2024, the world commissioned the lowest amount of new coal power capacity in twenty years (44 GW), yet the global coal fleet still grew by 18.8 GW because additions exceeded retirements. The report highlights a stark divergence: while the UK became coal-free and EU27 retirements quadrupled, China saw its highest construction starts since 2015 (94 GW) and India recorded its highest year for new proposals (38.4 GW). Together, China and India accounted for 92% of all newly proposed coal capacity in 2024. In the OECD, proposals have plummeted from 142 in 2015 to five today, though annual retirements must more than triple to 70 GW to meet 1.5°C pathways. The report also notes the rise of 'captive' coal plants in Indonesia and the promotion of ammonia co-firing in Japan and South Korea as strategies to prolong coal use.

• Global newly operating coal power capacity reached its lowest level in two decades in 2024, totaling 44 GW, which is nearly 30 GW below the 2004-2024 annual average of 72 GW.
• Despite the low commissioning rate, the global coal fleet grew by 18.8 GW in 2024 because the 44 GW of new capacity exceeded the 25.2 GW retired.
• China experienced a significant surge in coal development in 2024, with 94 GW of construction starts, the highest since 2015, following a permitting boom in 2022 and 2023.
• India saw a record high of 38.4 GW in new coal plant proposals in 2024, with the government aiming to add 93 GW of new capacity by 2032.
• China and India are increasingly the only major drivers of new coal, together accounting for 92% (107.3 GW) of all newly proposed coal power capacity globally in 2024.
• The United Kingdom officially became coal-free in September 2024 after shutting down its last coal plant, making it the sixth country to phase out coal entirely since the 2015 Paris agreement.
• Coal retirements in the EU27 grew fourfold in 2024, increasing from 2.7 GW in 2023 to 11 GW, with Germany accounting for 6.7 GW of that total.
• In the OECD, coal plant proposals have dropped from 142 in 2015 to five in 2024, but annual retirements must increase from 19 GW to 70 GW to align with the IEA Net Zero scenario.
• Indonesia is seeing a surge in 'captive' coal plants for industrial use, which accounted for over 80% of the country's 1.9 GW of new capacity additions in 2024.
• Japan and South Korea are promoting ammonia co-firing as a decarbonization strategy, despite the technology's high cost and failure to meet the 90% emission reduction threshold required to be considered 'abated'.
• In Africa, Zimbabwe and Zambia are increasing proposed coal capacity, with much of the development sponsored by Chinese companies.
• Private financial support for coal remains high, with commercial banks providing US$470 billion in loans and underwriting to the coal industry between January 2021 and December 2023.

APA

Trend Asia (2025). Boom and Bust Coal 2025. https://trendasia.org/wp-content/uploads/2025/05/Boom-Bust-Coal-2025.pdf

Chicago

Trend Asia. Boom and Bust Coal 2025. 2025. https://trendasia.org/wp-content/uploads/2025/05/Boom-Bust-Coal-2025.pdf.

Wikipedia

{{cite report |author=Trend Asia |title=Boom and Bust Coal 2025 |date=April 2025 |url=https://trendasia.org/wp-content/uploads/2025/05/Boom-Bust-Coal-2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trendasia2025boom, author = {{Trend Asia}}, title = {{Boom and Bust Coal 2025}}, institution = {Trend Asia}, year = {2025}, month = apr, url = {https://trendasia.org/wp-content/uploads/2025/05/Boom-Bust-Coal-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }