Record coal output contrasts sharply with emissions-cutting claims

Global coal production reached a record 9.1 billion tonnes in 2025, underlining the scale of the challenge facing efforts to reduce emissions and accelerate the transition to cleaner energy systems.

New figures show China remained the dominant producer, reaching a record 4,830 million tonnes. The country’s coal industry continues to play a central role in energy supply and industrial production, including the fast-growing coal gasification sector.

Coal gasification, which converts coal into chemicals and plastics, consumed an estimated 380 million tonnes of coal last year. The sector has gained renewed momentum following the closure of the Strait of Hormuz during the first quarter of 2026, which heightened concerns over global energy security and fuel supplies.

The continued growth of coal-based industries highlights the importance of expanding renewable energy, improving energy efficiency and reducing dependence on carbon-intensive fuels.

In contrast, Europe continued to move in the opposite direction. Total coal supply across the European Union, including imports, fell by 4.7% to 296 million tonnes in 2025.

Lignite production declined by 5.9% to 185 million tonnes, while hard coal output dropped by 2.8% to 44.1 million tonnes. Coal imports also fell by 2.5% to 67.2 million tonnes.

The decline reflects the EU’s long-term strategy to cut greenhouse gas emissions and increase the use of renewable energy sources.

Coal prices also softened during much of 2025. Steam coal delivered to north-west European ports averaged US$100 per tonne, 11.6% lower than the previous year.

However, prices recovered towards the end of the year and strengthened further in early 2026 as geopolitical tensions in the Middle East increased.

The findings, compiled by EURACOAL with input from its members, illustrate the contrasting paths being taken globally as nations balance energy security, economic growth and sustainability goals.