China is the largest consumer of coal in the world, with more than 55.8% of the global demand. The International Energy Agency (IEA) reports that demand for coal in China was 4953 Mt in 2025. The huge consumption stems from its dependence on thermal electricity for industrial processes and power grid stability.
China is the largest consumer of coal, accounting for around 56% of global coal consumption in 2025. India and the US are second and third. China and India combined are responsible for 71% of global coal consumption.
China: Largest Consumer of Coal in the World
China consumes the most coal in the world. If we go by statistics, it consumes 40% more coal than the rest of the world combined. China's coal demand increased 0.1% in 2025, despite a significant rise in solar and wind energy.
Coal is also critical to the Chinese energy mix for industrial applications such as steel and cement. China has the world's most renewable energy generation capacity, but coal-fired power stations supply the baseload energy required for its large industrial sector. Baseload power is the smallest amount of power needed to be delivered by the electric system to consumers.
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Why Is Global Coal Consumption Still High?
Coal is widely used due to its availability and low cost. Developing countries use coal to rapidly supply cheap electricity to meet demand.
The coal used to make steam to generate electricity is called thermal coal. Coking coal is used for making steel. Both varieties are highly sought in Asia. Energy demand in 2025 increased by 1.3%. Most of this growth was met by renewables, but coal continued to play a vital role in power generation.
Top 5 Coal Consuming Countries in the World
Based on the Statistical Review of World Energy Report by Energy Institute, the top 5 coal consuming countries in the world in 2024 (in exajoules) were:
| Rank | Country | 2024 Consumption (EJ) | Share of Global Total |
| 1 | China | 92.16 | 55.8% |
| 2 | India | 22.97 | 13.9% |
| 3 | United States | 7.90 | 4.8% |
| 4 | Indonesia | 4.72 | 2.9% |
| 5 | Japan | 4.53 | 2.7% |
Source: Statistical Review of World Energy by Energy Institute
The Major Shift from West to East
Coal is in long-term decline in the developed world. Europe and the US are retiring coal plants to get to net zero in carbon emissions. Coal-fired generation in the European Union dropped below 10% of generation for the first time in 2025.
But coal is on the rise in Asia's emerging markets. India, Indonesia, and Vietnam are investing in new coal-fired power. They see coal as a means to reduce poverty and promote energy security.
Which country is the largest producer of coal?
China is the largest producer of coal in the world. It produces nearly half of the global supply to meet its internal demand. While China produces a vast amount of coal, it also imports coal from countries like Australia and Indonesia to meet its energy needs.
Why does China use so much coal?
China uses coal primarily because it has huge domestic reserves and an established industrial infrastructure. Coal provides the consistent energy needed for factories and heavy industries. Transitioning away from coal is difficult because it supports millions of jobs and provides energy security for over 1.4 billion people.
Is coal consumption decreasing globally?
Global coal consumption is currently in a "plateau" phase. This means it is neither rising nor falling sharply. While use is dropping in North America and Europe, it is rising in Asia. Most experts predict global demand will stay flat until at least 2030 before a slow decline begins.
What is the difference between thermal coal and coking coal?
Thermal coal is burned in power plants to create steam and generate electricity. Coking coal, also known as metallurgical coal, is heated in ovens to create coke. This coke is an essential ingredient in the blast furnace process for manufacturing steel.
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