Coal's Unexpected Resilience

Global coal demand is experiencing a surprising increase, contrary to the widespread belief that it is a declining energy source. The International Energy Agency's latest report indicates that coal's demand reached 8.77 billion tons in 2024, the highest ever recorded, driven primarily by emerging economies like China and India. China's electricity demand, boosted by burgeoning industries such as artificial intelligence and electric vehicle manufacturing, is growing faster than its GDP, contributing to increased coal consumption. Meanwhile, India's coal use has also surged, as the country balances its commitment to renewables with the construction of new coal power plants, highlighting the complex dynamics of energy transitions.