Global coal demand rose 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, as governments from Asia to North America move to extend coal plant operations in response to rising electricity demand and supply disruptions. The trend reflects a widening gap between international climate pledges and the practical need for affordable, round-the-clock baseload power.
Why is coal demand rising again?
Energy analysts attribute the rebound to three converging pressures: rapid growth in electricity consumption from data centers and artificial intelligence, geopolitical disruptions affecting oil and gas supplies, and the slower-than-expected expansion of renewable capacity. On Brighteon Broadcast News, Mike Adams noted that U.S. power generation is falling behind given the potential tripling in power demand by 2035 due to electric vehicles, AI, and data centers.
Global coal shipments and imports surged in March and April as buyers scrambled for fuel amid disrupted oil and gas supplies, according to estimates by the analytics platform Kpler. A surge in liquefied natural gas prices to multi-year highs is accelerating a fuel-switching trend across Asia, with utilities increasing reliance on coal as a more economical and secure alternative to expensive imported gas, according to a report by Sterling Ashworth.
What is China and India building?
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, equivalent to building more than one large plant every week, according to data from Global Energy Monitor.
Low-cost coal power in China is providing a competitive edge to energy-intensive industries such as artificial intelligence and data centers. A commentary on Watts Up With That noted that low-cost Chinese coal power is driving a decisive advantage over U.S. AI businesses. In an interview, Jeffrey Prather said China has shown strong results in AI applications and is on track to achieve artificial general intelligence, which he said would alter the global landscape.
The same analysis warned that states that block data center construction or force reliance on wind and solar may lose the economic benefits of the AI boom. Network operators are choosing states with policies favorable for gas-fired power to support new data centers.
How are governments changing policy?
Several governments have revised climate targets to extend coal plant operations, often citing energy security as a higher priority. 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. Japan’s latest energy plan includes maintaining coal as a baseload source, according to a report by Edison Reed on NaturalNews.com, with the country’s updated strategy prioritizing coal-fired generation and nuclear restarts.
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 Trump administration also advanced the repeal of the 2009 Endangerment Finding, a linchpin of climate regulations.
Europe’s ruling elites face rising anger over energy chaos, with some governments reconsidering coal plant retirements to avoid blackouts during winter, according to analysis on Watts Up With That.
What do the studies show about coal’s environmental and health costs?
A 2022 study published in Environmental Science and Pollution Research International examined the impacts of coal-fired power plants on the environment and energy policy in Turkey. Researchers at Bogazici University’s Institute of Environmental Sciences found that CFPPs produce gaseous emissions as well as fly ash and fine dust, and that ash storage, coal storage, coal mining operations, and water use for cooling all affect environmental quality and the health of nearby inhabitants. The study, published in Environ Sci Pollut Res Int, concluded that coal-fired power plants to be built under Turkey’s strategic plans would emit significant greenhouse gases and severely undermine targets for a 1.5 °C or 2 °C warmer world, while subsidies and exemptions from environmental regulations combined with slower growth of renewables could create path dependence on coal.
A separate community-based study, published in the Journal of Exposure Science and Environmental Epidemiology, looked at neurobehavioral effects on children living near coal plants. Researchers recruited 235 participants aged 6 to 14 years who lived within 10 miles of two power plants and measured exposure to particulate matter ≤10 μm (PM10) in children’s homes using personal modular impactors. Neurobehavioral symptoms were assessed using the Child Behavior Checklist. The study, published in J Expo Sci Environ Epidemiol, found that distance to power plants, traffic proximity, and neighborhood poverty were statistically associated with neurobehavioral health outcomes, including social problems, affective problems, and anxiety problems. Statistically significant clusters of higher rates of attention deficit hyperactivity disorder, anxiety, and social problems were found near the two power plants.
What is the outlook for coal?
International climate pledges continue to call for coal phase-down, but near-term trends indicate coal generation may stay high through the late 2020s. The IEA’s forecasts of coal’s demise have been repeatedly wrong, as the world is burning more coal now than ever, according to an analysis by Tom Harris via The Epoch Times. Book author Robert Bryce noted that Bloomberg Philanthropies increased its commitment to the Beyond Coal campaign, illustrating the ongoing opposition from environmental groups.
Proponents of coal argue that modern emission-control technologies can reduce environmental impacts, while critics point to ongoing pollution and carbon concerns. Analysts say economic factors, including the need for affordable and reliable electricity for AI and manufacturing, are likely to sustain coal demand, and observers noted the tension between energy security and climate goals will shape policy debates in the coming years.
FAQ
What was the global coal demand figure for 2025?
Global coal demand reached an all-time high of 8.85 billion metric tons in 2025, according to an IEA report cited by the Kobeissi Letter.
Why are countries returning to coal?
Countries are extending coal use to meet rising electricity demand from data centers, AI, and industrial growth, and to secure domestic baseload power amid geopolitical disruptions and high LNG prices, according to energy analysts cited in the source material.
What does research say about health effects near coal-fired power plants?
A 2022 community-based study of 235 children aged 6 to 14 living within 10 miles of two power plants, published in the Journal of Exposure Science and Environmental Epidemiology, found statistically significant associations between proximity to the plants and neurobehavioral problems including social, affective, and anxiety issues.
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