China and India proposed almost 88 percent of new coal-fired power generation proposals around the globe in the first half of 2025, despite a swift increase in renewable generation.
The Chinese Boom in Coal Capacity.
China increased its supply of coal-generated power by 21 gigawatts (GW) in half a year--the greatest since 2016. This growth is associated with historical energy deficits, and most of the new plants are configured as standby capacity to cope with peak demand. Nonetheless, China reduced its carbon emissions by 1 percent in early 2025 with robust increases in solar, wind and hydropower.
India's Dual Energy Path
In early 2025, India ordered 5.1 GW of coal plants, and has 92 GW of new plans on the anvil. Renewables had reached 220 GW capacity, but coal continues to supply nearly 70 percent of electricity in India. Even with the target of 500 GW of renewable energy in 2032, the government intends to produce approximately 90 GW of coal power as it goes to achieve the target. Delayed shutdowns and slow coal retirements lengthen dependencies on the older plants.
Global Energy Divide
In Asia coal is growing whereas it is being phased out in Europe or Latin America. In June 2025, Ireland closed the final coal plant and several other EU countries intend to go fully exit by 2029-33. Latin America has almost reached the end of coal expansion, which is an important contrast in the region.
Striking a balance between Energy Security and Climate Goals.
In the case of China and India, coal development is linked to industrial growth and energy security, rather than to emissions. The two countries have a similar agenda: developing renewable energy and using coal as a backup. The decisions they make will be influential in determining climate outcomes in the coming decade worldwide.
Month: Current Affairs - September 03, 2025
Category: current affairs daily