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Global Coal Demand Sparks Controversy Amid Energy Transition Push
Business & Finance

Global Coal Demand Sparks Controversy Amid Energy Transition Push

As the world races toward clean energy, coal remains a key—yet contentious—player in the global power equation.

Shereen DF
Last updated: April 10, 2025 2:19 pm
Shereen DF
Published April 10, 2025
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As the world races toward clean energy, coal remains a key—yet contentious—player in the global power equation.

The global conversation surrounding coal has reignited as nations face a complex dilemma between energy security and environmental sustainability. Once considered the lifeblood of industrial progress, coal now sits at the heart of a heated debate—fueling both literal power grids and figurative tensions among environmental advocates, industry leaders, and policymakers.

In 2024, coal consumption saw a surprising uptick in several key economies, defying climate pledges and raising concerns among environmental groups. According to the International Energy Agency (IEA), global coal demand reached record highs, particularly in countries like China and India where energy demands are still largely met through coal-fired power plants. In these regions, coal remains an accessible and affordable energy source, despite its environmental costs.

“The energy crisis triggered by geopolitical instability has made coal an attractive fallback,” noted Dr. Anita Ghosh, an energy policy analyst based in New Delhi. “Natural gas prices have been volatile, and renewable energy infrastructure isn’t yet sufficient to meet growing demand. Coal offers stability, even if it compromises long-term sustainability goals.”

The resurgence of coal comes amid significant pressure to reduce carbon emissions and limit global temperature rise to 1.5°C above pre-industrial levels. The 2023 United Nations Climate Change Conference (COP28) emphasized the urgent need to phase out unabated coal usage, but implementation remains uneven across the globe.

In the United States, coal production declined in recent years due to competitive natural gas prices and the expanding reach of renewables like wind and solar. However, in the wake of extreme weather events and grid reliability concerns, some states have delayed the retirement of coal plants. West Virginia and Wyoming, traditional coal strongholds, continue to push back against federal clean energy mandates, citing economic and employment concerns.

West Virginia Senator Joe Manchin, a vocal advocate for coal, remarked in a recent Senate hearing, “We cannot leave behind communities that have powered our nation for generations. A balanced energy transition must include coal for the foreseeable future.”

Meanwhile, in Europe, the war in Ukraine and the curtailment of Russian gas imports forced several EU countries to temporarily restart mothballed coal plants. Germany, in particular, reactivated several units in 2022 and 2023 to stabilize its energy grid. While these measures were labeled temporary, climate activists fear they could set back hard-earned environmental gains.

Coal is not just a domestic issue—it’s deeply interwoven into the international energy market. Global coal trade continues to thrive, with major exporters like Australia, Indonesia, and South Africa benefiting from increased demand in Asia. In 2024, Australian coal exports surged by over 12%, bolstered by high demand from India and the return of Chinese imports after a two-year unofficial ban.

Despite coal’s grim environmental footprint—it is the single largest source of global carbon emissions—it still accounts for over one-third of global electricity generation. The challenge lies not only in decommissioning aging plants but also in ensuring that developing economies have access to cleaner, reliable alternatives.

Investment in carbon capture and storage (CCS) technologies has been cited as a potential solution to decarbonize coal. Companies like Mitsubishi Heavy Industries and Chevron have launched pilot projects aimed at capturing CO₂ emissions directly from smokestacks. Yet, critics argue that CCS is an expensive and limited band-aid for a far more systemic issue.

“We need to reduce our reliance on coal altogether, not prolong its life under the guise of cleaner emissions.”

At the same time, the human element of the coal story cannot be overlooked. Coal mining towns across Appalachia, Inner Mongolia, and Jharkhand are grappling with economic uncertainty as global trends shift. Efforts to retrain coal workers for green energy jobs are underway, but success remains inconsistent.

For example, in Kentucky, several nonprofit organizations have partnered with technical colleges to provide solar panel installation training to former miners. Some have found new purpose in the renewable sector, but others remain skeptical. “It’s not just a job,” said former miner Dave Collier. “Coal is part of our identity.”

As nations gear up for the next round of climate negotiations, coal will undoubtedly remain a central point of contention. Balancing immediate energy needs with long-term climate goals is no easy feat, especially in an increasingly polarized world. Yet the trajectory of global coal usage could determine whether climate targets are met—or missed entirely.

Looking ahead, energy experts urge a pragmatic yet urgent shift. “The transition away from coal must be just, inclusive, and swift,” said Fatih Birol, Executive Director of the IEA. “We have the tools, but we need the will.”

The world stands at a critical juncture. Coal, once the engine of progress, now poses one of the biggest threats to planetary health.

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TAGGED:carbon emissionsclean energy transitionclimate changecoalcoal miningfossil fuelsglobal energy
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