A new report released Thursday (April 3) reveals that the global expansion of coal power capacity reached its lowest level in two decades in 2023. However, coal consumption is still rising sharply in China and India, complicating efforts to curb fossil fuel dependence.
Coal continues to supply just over one-third of the world’s electricity, and its reduction is critical for achieving climate change targets.
Last year, only 44 gigawatts (GW) of new coal power capacity were added worldwide—the lowest since 2004—according to the findings from a coalition of energy and environmental research organizations and NGOs.
Christine Shearer from the Global Energy Monitor, which co-authored the report, remarked, “Last year marked the beginning of a new phase for coal as the global shift toward clean energy accelerates."
However, the report highlighted that new coal power capacity still outpaced the closure of older plants, leading to a net increase in the global coal fleet.
China alone initiated the construction of a record number of coal plants last year, while India also proposed an unprecedented number of new coal projects.
“More effort is needed to phase out coal in line with the Paris Climate Agreement, especially in the wealthiest nations,” Shearer stressed.
The International Energy Agency (IEA) predicts that global coal demand will plateau between 2024 and 2027, as declines in developed countries are offset by continued growth in emerging economies. China, which consumes a third of the world’s coal, remains a pivotal player in global coal consumption patterns.
Despite record coal plant construction in China last year, the report noted a slowdown in the approval of new coal permits in the country compared to the previous two years.
Meanwhile, Southeast Asia, historically reliant on coal for economic development, has seen a decline in new coal proposals, thanks in part to commitments from countries like Indonesia, Malaysia, the Philippines, and Vietnam to gradually phase out coal.
However, Japan and South Korea have come under criticism for advancing "dubious" coal technologies both domestically and internationally, with the report warning that these methods are costly and unlikely to provide the emissions reductions necessary for climate stability.
One of the key technologies mentioned is co-firing ammonia with coal in power plants. While this can lower emissions, the overall environmental benefit is uncertain, as the ammonia's emissions profile depends on its production method, and even low-emissions ammonia still results in more carbon dioxide than alternative energy sources.
The report also highlighted uncertainties around coal policies in the United States following Donald Trump's return to office. Nevertheless, it pointed out that more coal plants were shut down during Trump’s first term than under both his predecessor Barack Obama and his successor Joe Biden.
“Trump’s first term demonstrates the growing economic challenges facing coal in the U.S., compounded by the aging fleet of coal plants,” the report concluded.
Source: Agencies
BDST: 1101 HRS, APR 03, 2025
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