Nearly nine out of ten new global coal power proposals in 2025 come from just two countries: India and China. According to the Global Energy Monitor’s Global Coal Plant Tracker (analyzed by Carbon Brief), China proposed 74.7 GW of new coal capacity between January and June 2025, while India put forward 12.8 GW in the same period. By comparison, the rest of the world combined accounted for only 11 GW, underscoring the overwhelming influence of these two Asian economies on global coal development. This reliance on coal persists even as India and China scale up their renewable energy efforts, reflecting a dual-track strategy that contrasts sharply with the coal phase-outs underway in Europe, the US, and Latin America.

Source: CarbonBrief

What Factors Are Driving China’s Surge in Coal Proposals?

China’s coal expansion is primarily driven by energy security concerns after the 2021–22 power shortages. To reduce risks of blackouts, policymakers are keeping coal on standby as a backup for peak demand.

Key 2025 Trends in China

• 46 GW of coal construction started and restarted (Jan–Jun 2025).
• 21 GW commissioned in the same period—the highest in nine years.
• Annual coal additions could exceed 80 GW by year-end, marking the most significant increase since 2016.
• 75 GW in new and revived projects, the most in a decade.
• Only 1 GW retired, far below the 30 GW retirement goal under the 14th Five-Year Plan.

Source: CarbonBrief

Interestingly, coal use hasn’t surged in proportion to capacity. In fact, China’s CO₂ emissions fell by about 1% in the first half of 2025, thanks to record solar, wind, and hydropower growth. Many coal plants operate primarily as reserve capacity, running during periods of high demand rather than continuously. This trend highlights the paradox of new global coal power proposals in 2025: capacity is expanding rapidly, but actual coal consumption growth remains limited as renewables take on a larger share.

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How Is India Implementing Its Dual-Track Energy Strategy?

India is balancing the rapid expansion of renewable energy with its continued reliance on coal.

• Renewables: Over 220 GW capacity by March 2025, moving toward the 500 GW 2030 target.
• Coal: It still supplies about 70% of the world’s electricity.
• Proposals: 92 GW coal capacity by July 2025, after a record 38.4 GW proposed in 2024.
• Commissioning: 5.1 GW in early 2025, compared to 4.2 GW in 2024.
• Retirements: Just 0.8 GW in 2025, slowed by delays in pollution control enforcement.

Source: CarbonBrief

India’s Strategy Can Be Summed Up As

• Solar & wind for long-term decarbonization.
• Coal for stable baseload power and industrial growth.

This dual approach reflects India’s challenge of meeting both development needs and climate goals.

The following table summarizes key coal power metrics for 2025 based on available data up to mid-year:

Source: CarbonBrief, Global Energy Monitor

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What Contrasts Exist in Coal’s Future Across Global Regions?

The picture looks very different outside Asia:

• Europe: Coal phase-outs are accelerating. Ireland shut down its last coal plant in June 2025, and many EU states plan to achieve full exits by 2029–2033. The EU retired 2.5 GW in the first half of 2025, with an additional 11 GW expected by year-end.

Source: CarbonBrief

• United States: 3.7 GW retired by July 2025; nearly 100 GW will close by 2035.

Source: CarbonBrief

• Latin America: No significant new coal projects, signaling an end to coal expansion.

Source: CarbonBrief

While Asia leads the new global coal power proposals in 2025, other regions are firmly moving away from it. This disparity points to the international divide. This discrepancy makes it more challenging to reach the 1.5°C goal outlined in the Paris Agreement, which calls for the worldwide halt of all new coal development.

Also Read: China’s Carbon Emissions Declined In First Half Of 2025, Study Reveals

How Do Energy Security Priorities Intersect with Climate Objectives?

China relies on coal for security while scaling up renewables; India promotes clean energy but still relies on coal.

For both China and India, coal isn’t just about emissions; it’s about keeping the lights on and supporting economic growth.

• China uses coal as a strategic buffer to prevent shortages.
• India relies on coal for industrial reliability while ramping up its renewable energy sources.

At the same time:

• China is adding dozens of GW of solar and wind annually.
• India is building large-scale clean energy parks across states.

This coexistence of clean energy expansion with new global coal power proposals in 2025 shows how the energy transition in developing economies is rarely linear. The choices made in the coming decade will play a decisive role in determining whether global climate goals can still be met.

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FAQ

Q: How much new coal could China add in 2025?

A: Projections suggest over 80 GW by year-end, based on commissioning trends.

Q: What renewable progress has India made by mid-2025?

A: India crossed 220 GW of renewables, on track for 500 GW by 2030.

Q: Why are coal retirements slow in India and China?

A: India faces delays in pollution-control enforcement, while China lags behind its 30 GW retirement target.

Q: What share of global coal proposals do India and China control?

A: About 87% of new global coal power proposals in 2025 came from these two countries in the first half of the year.

Q: How does this affect climate goals?

A: Continued coal expansion in Asia undermines efforts to cap warming at 1.5°C, even as renewables proliferate.

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