Overview

Coal generation has peaked and demand growth is stalling, but ongoing investments in coal power and mining reinforce the fuel’s persistent and high-risk role in the global energy system.

Coal remains the largest source of electricity worldwide and the leading contributor to carbon dioxide emissions, placing it at the center of the global energy transition. In 2025, the sector reached a historic turning point: Coal generation peaked and demand growth began to stall. However, the fuel continues to play a persistent and high-risk role in the global power sector and key industrial processes. As electricity demand surges and fossil fuel interests persist, the global focus is nonetheless shifting from stopping emissions growth to ensuring an absolute decline.

Since the landmark Paris Agreement in 2015, significant progress has been made towards phasing out coal. More than half the countries with coal power have reduced or kept operating capacity flat. Yet to meet the targets of the Paris agreement, all coal-fired power plants must be retired by 2040, and over half of global capacity still lacks a Paris-aligned closure commitment. Phasing out coal requires confronting policies, economic forces, and interests that keep existing coal assets and new coal projects alive, even when cheaper, cleaner options exist.

GEM’s coal program provides the data, tools, and analyses needed to navigate this complex landscape, tracking everything from coal mines and methane emissions to power plants, import and export terminals, and financial flows. By integrating asset-level infrastructure and data on key indicators like financing and workforces, the program supports evidence-based strategies for an accelerated and absolute transition away from coal.