The world added the smallest amount of new coal capacity in two decades in 2024, according to a report released Thursday. However, the use of coal is still surging in China and India, which remain major consumers of the fossil fuel.
Coal now accounts for just over a third of global electricity production, and phasing it out is critical to meeting climate change goals. In 2024, only 44 gigawatts (GW) of new coal power capacity were added globally, the lowest figure since 2004. This was revealed in a report by a coalition of energy and environmental research organizations and NGOs.
"Last year was a harbinger of things to come for coal as the clean energy transition accelerates," said Christine Shearer from Global Energy Monitor (GEM), which co-authored the report, as quoted by AFP.
Despite the slowdown in new coal capacity, the report highlights that coal closures were still outpaced by new capacity additions, leading to a net increase in the global coal fleet.
China and India lead growth
China, in particular, began construction on a record number of coal plants in 2024. The report also warned that India saw a record number of new coal proposals during the year.
"Work is still needed to ensure coal power is phased out in line with the Paris climate agreement, particularly in the world's wealthiest nations," Shearer added.
China last year started construction on 94 gigawatts of coal plants, the most in data back to 2015. And India saw proposals for new plants jump to a record 38 gigawatts, the researchers said.
“If not curtailed, the wave of new coal plants could undo President Xi’s pledge to strictly limit the growth in coal consumption through 2025,” the report said.
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China and India accounted for 92% of all newly proposed plants last year, according to GEM.
The International Energy Agency (IEA) predicts that global coal demand will plateau between 2024 and 2027, with declining use in developed countries largely offset by growth in emerging economies. China's electricity sector alone accounts for a third of all coal consumed worldwide, making its transition away from coal crucial to global trends.
Trends in Southeast Asia
While coal construction hit record highs in China, new coal permits there fell from the rapid pace seen in the previous two years, according to the report. In Southeast Asia, where countries like Indonesia have long relied on coal, new proposals for coal plants have decreased, thanks in part to various pledges in Indonesia, Malaysia, the Philippines, and Vietnam to phase out coal.
However, the report singled out Japan and South Korea for promoting "dubious 'decarbonization' coal technologies" both domestically and abroad. These technologies, such as co-firing with ammonia in coal plants, are considered expensive and unlikely to deliver the deep emission cuts needed to stabilize the climate.
Concerns over coal technologies
Co-firing with ammonia—replacing some of the coal in a plant with ammonia—can reduce emissions, but the ammonia’s emissions profile depends on how it is produced. Even with low-emissions ammonia, the process still generates more carbon dioxide than many other power generation technologies, the report warns.
The report also flagged uncertainty surrounding coal commitments in the United States, especially if former President Donald Trump returns to office. However, it pointed out that more coal plants were closed during Trump’s first term than under either his predecessor, Barack Obama, or his successor, Joe Biden.
"Trump’s first term demonstrates the difficulty of counteracting the declining economic feasibility of coal in the U.S., coupled with the aging of the country’s coal plants," the report concluded.
Editing by Reiner Simanjuntak
