The world is building more coal plants, but using less coal than before. That contradiction lies at the centre of a new report by Global Energy Monitor (GEM), an international organisation that tracks energy infrastructure and the global shift toward cleaner power.

According to GEM, whose databases and research are widely used by institutions including the IPCC, IEA, UNEP and the World Bank, countries are continuing to expand coal power infrastructure even as coal’s role in electricity generation weakens globally.

The latest edition of GEM’s Boom and Bust 2026 report found that global coal power capacity grew by 3.5% in 2025, while coal-fired electricity generation declined by 0.6%. The report describes the trend as a major structural shift in the global energy system, where coal remains politically important in several countries even as renewable energy increasingly replaces it in practice.

China and India Drive Coal Growth

The contradiction is most visible in China and India, the world’s two largest coal consumers. Both countries commissioned large amounts of new coal capacity in 2025, even as coal generation declined because of record additions in solar and wind power.

China expanded coal capacity by 6% in 2025, while coal-fired generation fell by 1.2%. India recorded a similar pattern, with coal capacity increasing by 3.8% even as coal generation dropped by 2.9%.

The report suggests that coal’s decline is becoming increasingly durable despite global energy uncertainties, including geopolitical tensions affecting fuel supply routes such as the Strait of Hormuz. Renewable energy expansion has continued rapidly enough to reduce coal’s role in meeting new electricity demand.

Christine Shearer, Project Manager of GEM’s Global Coal Plant Tracker, described the trend as a defining paradox of the global energy transition.

“In 2025, the world built more coal and used it less,” she said. She added that 95% of all coal plant construction is now concentrated in China and India, even as both countries expand renewable energy fast enough to displace coal generation.

China’s Coal Pipeline Continues to Surge

China remained the dominant force in global coal expansion during 2025. The country recorded a record 161.7 GW of new and revived coal projects, while more than 500 GW of coal-fired capacity is currently under development.

The report warned that if these projects move ahead, China could remain locked into years of additional coal use throughout its 15th Five-Year Plan period from 2026 to 2030, despite official commitments to reduce coal consumption during the same timeframe.

India Expands Coal While Renewables Accelerate

India is also continuing major coal expansion plans. The country recorded 27.9 GW of new and revived coal proposals in 2025. Overall, India now has more than 107 GW of coal capacity in pre-construction planning and another 23.5 GW already under construction.

The Indian government has announced plans to add 100 GW of new coal capacity over the next seven years, even as renewable energy growth continues at record pace. In 2025, non-fossil fuel sources crossed the milestone of accounting for more than half of India’s installed electricity capacity.

Coal Development Shrinks Outside Asia

Outside China and India, coal development is shrinking rapidly. Only 32 countries were proposing or building new coal plants in 2025, down from 38 countries the previous year and less than half the 75 countries pursuing coal expansion in 2014.

Coal construction activity outside China and India accounted for just 5% of global coal construction capacity in 2025, marking a record low and highlighting how geographically concentrated coal development has become.

Several regions also made notable progress away from coal. Latin America achieved “No New Coal” status in 2025, while South Korea committed to a complete coal phaseout.

Türkiye, which is preparing to host COP31, now has only one active coal plant proposal remaining, compared with more than 70 proposed projects in 2015.

Delayed Coal Retirements Raise Concerns

The report also found that retirement plans for existing coal plants are slowing in several regions. Nearly 70% of coal-fired units scheduled for retirement globally in 2025 failed to retire as planned.

In the European Union, many delays were linked to energy security concerns that emerged during the 2022–23 energy crisis. In the United States, several ageing coal plants remained operational because of direct government interventions aimed at maintaining grid reliability.

Indonesia continued expanding its coal fleet, which grew by 7% in 2025, largely driven by captive coal plants supporting nickel and aluminium processing industries.

South Asia and Southeast Asia Show Mixed Trends

Elsewhere in South Asia, Pakistan rapidly expanded distributed solar energy, helping stabilise its electricity system against volatile fossil fuel markets. Bangladesh, meanwhile, continues to face fuel supply and technical challenges linked to its fossil-fuel-based power sector.

Across Southeast Asia outside Indonesia, coal commissioning declined for the third consecutive year. However, disruptions in regional gas supplies during 2026 led some countries to rely more heavily on existing coal infrastructure as a temporary backup source.

In Africa, new coal proposals remain limited and are mainly concentrated in Zimbabwe and Zambia.

Renewable Energy Reshapes the Global Energy Transition

The report concludes that coal is no longer expanding as a universally accepted solution for rising electricity demand. Instead, coal development is increasingly concentrated in a small number of countries, even as renewable energy demonstrates its ability to meet growing demand more efficiently and sustainably.

India crossed a major renewable energy milestone in 2025, but the country’s continued expansion of coal power projects is raising new questions about the long-term direction of its energy strategy.

A new report by the international energy research organisation Global Energy Monitor (GEM) shows that India’s coal power capacity continued to grow in 2025 even as coal-fired electricity generation declined — a trend the report describes as part of a widening global disconnect between expanding coal infrastructure and falling coal usage.

According to Boom and Bust 2026, GEM’s annual assessment of the global coal industry, India’s coal power capacity increased by 3.8% in 2025, while electricity generation from coal plants fell by 2.9%.

The decline in coal generation came alongside record additions of solar and wind energy capacity. India’s non-fossil fuel power capacity reached nearly 267 GW during the year, allowing clean energy sources to account for more than 50% of the country’s total installed electricity capacity for the first time. Solar and wind energy increasingly met rising electricity demand, reducing coal’s role in supplying additional power needs.

Coal Capacity Continues to Expand

Despite the renewable surge, India continued commissioning new coal plants. Coal plant additions reached 10 GW in 2025, while retirements remained below 1 GW. The report noted that the slow pace of retirements aligns with recommendations from the Central Electricity Authority (CEA), which has argued that thermal power capacity should be retained through 2030 to maintain grid stability and energy security.

India’s total coal fleet has now expanded to more than 250 GW of installed capacity, including around 226 GW directly serving the power sector.

The report also highlighted a sharp rise in coal projects under development. India recorded 27.9 GW of new and revived coal power proposals in 2025, extending a fifth consecutive year of growth in planned coal capacity. Proposed coal capacity has increased from 29 GW in 2021 to 107 GW in 2025. Another 23.5 GW of coal capacity is currently under construction.

According to the report, the expansion closely mirrors the Indian government’s revised coal targets, which increased from 80 GW in 2024 to 100 GW in 2025. If all planned projects are completed, India’s coal fleet could expand by nearly 40% by 2032, even as renewable energy capacity continues to accelerate.

Heatwave Tests India’s Power System

Early 2026 data suggests coal’s contribution to electricity generation may be weakening further. Analysis of daily CEA generation figures cited in the report found that coal and lignite generation between January and April 2026 was around 2% lower than during the same period in 2025.

The decline came despite a record-breaking spring heatwave that pushed electricity demand to historic highs across India. During peak demand periods, solar energy reportedly supplied more than one-fifth of the country’s electricity demand, highlighting the growing role of renewables in grid reliability.

Christine Shearer, Project Manager of GEM’s Global Coal Plant Tracker, said the developments marked a turning point for India’s energy sector.

“India crossed a milestone in 2025, with renewables making up the majority of installed power capacity for the first time. We’re now seeing solar help meet record peaks in demand — a sign that clean energy is becoming central to India’s energy security, not just a supplement to it,” she said.

Shearer added that India’s future energy security would increasingly depend on improving coordination between existing power resources rather than adding more coal plants.
“As renewable generation continues to grow, that security will increasingly depend on how effectively existing resources operate together, rather than on the addition of new coal plants,” she said.

Global Coal Trends Show Growing Divide

The report places India within a broader global trend in which coal capacity continues to rise even as coal-fired electricity generation declines. Globally, coal power capacity grew by 3.5% in 2025, while coal generation fell by 0.6%.

China and India were identified as the clearest examples of this divergence. China’s coal power capacity expanded by 6% in 2025 even as coal generation declined by 1.2%. The country also recorded a record 161.7 GW of new and revived coal projects during the year.

The report noted that coal development is increasingly concentrated in fewer countries. The number of nations proposing or constructing new coal plants declined from 38 in 2024 to 32 in 2025. South Korea, Brazil and Honduras were among the countries exiting the coal pipeline, with South Korea pledging to phase out coal power by 2040.

Outside China and India, coal construction activity fell to just 5% of global construction capacity in 2025 — the lowest level recorded so far.

South Asia Shows Diverging Energy Paths

The report also highlighted differing energy trends across South Asia. Pakistan was cited for rapidly expanding distributed solar systems, while Bangladesh continued to face fuel supply and technical challenges linked to its fossil fuel-based power sector.

GEM’s Global Coal Plant Tracker, regarded as one of the world’s most comprehensive databases on coal-fired power infrastructure, tracks operating, proposed and retired coal power units above 30 MW worldwide.

Methane emissions from the global energy sector remain stubbornly high, with no clear signs of decline, even as countries ramp up climate commitments. A new report by the International Energy Agency warns that closing this gap could not only curb warming but also significantly ease global gas shortages.

Released as part of the Global Methane Tracker 2026, the analysis shows that tried-and-tested measures could unlock up to 200 billion cubic metres (bcm) of natural gas annually—a volume that could reshape supply dynamics during a time of geopolitical strain.

Methane emissions plateau despite rising commitments

Despite pledges now covering over half of global oil and gas production, methane emissions from fossil fuels remained near record highs in 2025. The report highlights a widening “implementation gap” between ambition and actual reductions.

Around 70% of emissions are concentrated in just 10 countries, underscoring how targeted action could deliver outsized results. At the same time, performance varies drastically, with the most efficient producers emitting over 100 times less methane than the worst performers.

Energy crisis sharpens urgency

The urgency is heightened by ongoing disruptions in global energy markets, particularly the near-closure of the Strait of Hormuz, which has cut close to 20% of global LNG supply.

The IEA estimates that 15 bcm of gas could be made available quickly through existing methane abatement measures in key exporting and importing countries. Over time, broader action could deliver nearly 100 bcm annually, with another 100 bcm unlocked by eliminating non-emergency gas flaring.

“This is not only a climate issue,” said Tim Gould. “There are also major energy security benefits that can come from tackling methane and flaring, especially at a time when the world is urgently looking for additional supply amid the current crisis.”

Low-cost solutions within reach

The report emphasises that around 70% of methane emissions—roughly 85 million tonnes—can be reduced using existing technologies. Notably, over 35 million tonnes could be avoided at no net cost, making methane abatement one of the most cost-effective climate actions available.

A major share of emissions—about 80% in oil and gas—comes from upstream operations, making this a critical focus area for policymakers.

Coal sector under scrutiny

Experts say the coal sector remains a blind spot in global methane mitigation efforts.

“Coal, one of the biggest methane culprits, is still being ignored,” said Sabina Assan of Ember. “There are cost-effective technologies available today, so this is a low-hanging fruit for tackling methane. We can’t let coal mines off the hook any longer.”

India and other major emitters need sharper focus

For countries like India, the report and accompanying expert commentary point to an urgent need to prioritise methane from coal mining—an area often overlooked in climate strategies.

“Methane emissions from coal mining have not received enough attention,” said Rajasekhar Modadugu. “Major coal mining countries, including India, should focus on existing technologies and the feasibility of capturing or eliminating these emissions.”

Satellites and policy frameworks gaining traction

The report also highlights the growing role of satellite monitoring in identifying large methane leaks, alongside new frameworks developed with international bodies to help governments respond more effectively.

With improved data transparency and emerging markets for low-methane fuels, the IEA suggests the groundwork is already in place. The challenge now lies in execution.

As Gould put it, “Setting targets is only a first step—real progress depends on policies, implementation plans and concrete action