After reaching a new high in 2024, global demand for coal is set to level off in the coming years as a surge in renewable power helps to meet soaring demand for electricity around the world, according to an IEA report out today.

Coal 2024 shows that global coal use has rebounded strongly after plummeting at the height of the pandemic. It is poised to rise to 8.77 billion tonnes in 2024, a record. According to the report, demand is set to stay close to this level through 2027 as renewable energy sources play a greater role in generating power and coal consumption levels off in China.

In most advanced economies, coal demand has already peaked and is expected to keep decreasing through 2027. The pace of decline will continue to depend on the enactment of strong policies, such as those implemented in the EU, and the availability of alternative power sources, including cheap natural gas in the US and Canada.

Meanwhile, demand for coal is still increasing in some emerging economies where electricity demand is rising sharply along with economic and population growth, such as India, Indonesia and Viet Nam. In emerging economies, growth is mainly driven by coal demand from the power sector, although industrial use is also going up.

The electricity sector in China is pivotal, with one out of every three tonnes of coal consumed worldwide burned at a power plant in the country. In 2024, China continued to diversify its power sector, advance the construction of nuclear plants and accelerate its huge expansion of solar PV and wind capacity. This should help limit increases in coal consumption through 2027, according to the report.

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