India Leads in New Coal Proposals for 2024, Reports Global Energy Monitor

India contributed to one-third of the world's new coal project proposals in 2024, totaling 38.4 GW—the highest since 2015—according to the latest Global Energy Monitor (GEM) report released on Thursday. The 10th edition of the Boom and Bust Coal report highlights that 10 countries are responsible for 96% of global coal power capacity development, with China and India alone accounting for 87%.

India aims to phase out coal imports by 2025–26 and reduce its reliance on coal for electricity generation. (Photo: Shutterstock)

Approximately 60% of India's 38.4 GW of new proposals are funded by state-owned enterprises (SOEs) using public resources. A coal proposal encompasses mining, processing, utilization, or regulatory plans related to coal, often involving research, development, or policy shifts in the sector.

These new proposals have expanded India’s total pre-construction coal plant capacity by over 75% from 2023, reaching 81.4 GW. Meanwhile, the country’s operational coal capacity increased marginally, with 5.8 GW of new coal-fired capacity added and 0.2 GW retired, leading to a net gain of 5.6 GW—the most significant expansion of India’s coal fleet since 2019.

As the world's second-largest coal producer after China, India relies on coal for nearly 75% of its electricity needs. In FY25, the country produced 1.04 billion tonnes of coal for the first time. Together, India and China were responsible for 92% of the newly proposed global coal power capacity in 2024, accounting for 107 out of 116 GW.

“While coal power set records last year, they are not the types the industry would hope for. Last year signalled a shift for coal as the clean energy transition gains momentum. However, efforts are still needed to ensure coal power is phased out in line with the Paris climate agreement, especially in the wealthiest nations,” said Christine Shearer, the project manager of GEM’s Global Coal Plant Tracker.

The report indicates that nearly half of the top ten coal-producing countries are unlikely to see substantial growth in new coal projects in the coming years. As a result, future coal development will become more concentrated, potentially leaving China and India isolated if they do not shift their approach.

India, meanwhile, aims to eliminate coal imports by 2025–26 and decrease its dependence on coal for electricity generation. The country has set a goal of achieving 50% non-fossil fuel capacity by 2030 and reaching net-zero emissions by 2070 as part of its climate commitments.

Outside of China and India, new coal project proposals amounted to just 8.8 GW in 2024—the lowest level since 2015. Additionally, the total coal power capacity under development has declined for the tenth consecutive year, dropping by over 80% from 445 GW in 2015 to 80 GW in 2024.

(This Article was originally published by Business Standard)