India increases coal production plans despite global decline in demand
Kyiv • UNN
India plans to increase coal production to 1.15 billion tonnes in 2025–2026, despite a global reduction in demand. This is happening against the backdrop of an increase in proposals for new mines in the states of Jharkhand and Odisha.
According to a new report, enough new coal mining projects were proposed last year to increase global coal supply by 2.5 billion tonnes per year. This is 11% more than the year before, even despite the stabilization of coal demand. The Guardian reports, UNN writes.
Details
Global Energy Monitor, a non-governmental organization, found that India was the main driver behind the increase in proposals for new coal mines in 2025, despite a global slowdown in the pace of mine openings due to falling demand for this fossil fuel.
The increase was almost entirely driven by the states of Jharkhand and Odisha, which doubled the number of proposals for new coal mines in line with the Indian Ministry of Coal’s ambitious plan to increase coal production in the country.
India plans to increase coal production by nearly 100 million tonnes—to 1.15 billion tonnes in the 2025–2026 financial year. This is intended to help meet the country’s growing demand for electricity to support economic development and counter heatwaves that have become more intense and frequent due to the climate crisis.
The planned increase in production is taking place despite signs that the world is gradually moving away from coal in favor of renewable energy, Global Energy Monitor said.
Proposals for new coal mines declined in the years following the COVID-19 pandemic, but have recently begun to rise again. This raises concerns that production could increase in the future despite a reduction in the number of new mines being commissioned.
According to the latest Global Energy Monitor report, the pace of new coal project commissioning has steadily declined in recent years.
The organization found that new coal mines with a total annual production capacity of approximately 113 million tonnes began operating last year. This is 40% less than in 2024, which was already the lowest level in the past decade.
This was largely due to a reduction in the number of new mines in China and Australia—by 44% and 96%, respectively.
Global Energy Monitor warned that the increase in the number of new projects in India runs counter to the slowdown in global coal demand projected by the International Energy Agency through the end of the decade.
According to a separate report by the Ember think tank, wind and solar power exceeded coal generation in the global energy mix for the first time last year. The organization called this a "defining moment" in the fight against climate change.
According to Ember, China and India were the main reasons for the increase in renewable electricity generation, while the United States and Europe continued to rely heavily on fossil fuels.
Tiffany Means, a senior researcher at Global Energy Monitor and co-author of the report, said: "The economic case for expanding coal production is becoming increasingly weaker as cheap clean energy continues to displace coal.
Rather than locking in additional coal production for decades to come, governments have the opportunity to cancel projects that remain in the development stage before they move to construction".