Recent research reveals a significant uptick in the world’s coal-fired power capacity, marking its highest surge since 2016. This growth is primarily attributed to new construction in China and delays in decommissioning projects elsewhere, according to a new study released on Thursday.
Despite significant expansion in renewable energy installations, the global landscape witnessed the commissioning of nearly 70 gigawatts (GW) of new coal power capacity last year. China alone contributed a substantial portion of new coal power capacity – amounting to 47.4 GW – according to the annual survey conducted by the U.S.-based Global Energy Monitor (GEM) think tank.
Additionally, coal-fired capacity outside of China grew for the first time since 2019. By contrast, only 21.1 GW of coal power was decommissioned worldwide during the same period.
While 25 countries have reduced their reliance on coal-fired power since the signing of the Paris Agreement in 2015, 35 nations have seen an increase. Flora Champenois, the lead author of the GEM report, emphasized the need for more action to move away from coal dependence.
“The world is heading in the right direction in terms of coal’s role in the energy sector, but not quickly enough, and with some risky detours along the way,” she said.
According to the International Energy Agency, global coal power capacity must be phased out by 2040 in order to align with the targets of the Paris Agreement and limit the average global temperature rise to 1.5 degrees Celsius (2.7 degrees Fahrenheit). This would require an annual closure of 126 GW of coal power generation – equivalent to decommissioning two plants every week – even without the addition of new capacity, according to GEM.
Despite these targets, the survey reveals that another 578 GW of coal capacity is currently in development globally, with China alone accounting for 408 GW. This looming surge in coal infrastructure presents significant challenges, particularly concerning China’s long-term climate goals.
With recent approvals for coal projects adopting a “build first and modify later” approach, concerns are rising over the potential accumulation of stranded assets and the viability of such investments in the face of evolving energy dynamics.