Global coal consumption climbed to a fresh record of 166.0 exajoules in 2025, marking a 0.7% increase from the prior year, according to the latest Statistical Review of World Energy. This milestone underscores the persistent reliance on coal across industrial economies despite decades of pledges to phase out the world's most carbon-intensive fossil fuel, painting a nuanced picture of global energy demand and transition priorities.
The apparent contradiction between record consumption and declining power generation reflects shifting uses of coal beyond electricity. While coal-fired power generation fell 0.3% to 10,511 terawatt-hours in 2025, industrial applications including steelmaking, cement production, and chemical manufacturing continue to drive substantial coal demand. This divergence suggests that renewable energy and natural gas are displacing coal in the power sector, even as coal maintains its foothold in harder-to-decarbonize industrial processes.
The data underscores the complexity of global energy transition efforts. While policymakers and utilities increasingly pursue renewable energy and nuclear alternatives for power generation, decarbonizing heavy industry—which relies on coal for both heat and chemical processes—remains a significant challenge. The record consumption figures highlight the need for targeted strategies that address coal use beyond the power sector, where alternatives and technological solutions remain less developed.