Coal phase-out

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Demolition of Navajo Generating Station smokestacks in 2020 Navajo Generating Station Implosion - 4.jpg
Demolition of Navajo Generating Station smokestacks in 2020
2000- Retired coal-fired power capacity - Global Energy Monitor.svg
The annual amount of coal plant capacity being retired increased into the mid-2010s. [1] However, the rate of retirement has since stalled, [1] and global coal phase-out is not yet compatible with the goals of the Paris Climate Agreement. [2]
2000- New coal-fired power capacity - Global Energy Monitor.svg
In parallel with retirement of some coal plant capacity, other coal plants are still being added, though the annual amount of added capacity has been declining since the 2010s. [3]

Coal phase-out is an environmental policy intended to stop burning coal in coal-fired power plants and elsewhere, and is part of fossil fuel phase-out. The health and environmental benefits of coal phase-out, such as limiting respiratory diseases and biodiversity loss, are greater than the cost. [4] Coal is the most carbon-intensive fossil fuel, therefore phasing it out is critical to limiting climate change as laid out in the Paris Agreement. [5] [6] The International Energy Agency (IEA) estimates that coal is responsible for over 30% of the global average temperature increase above pre-industrial levels. [7] Some countries in the Powering Past Coal Alliance have already stopped. [8]

Contents

China and India burn a lot of coal. [9] But the only significant funding for new plants is for coal power in China. [10] Developed countries may part finance the phase out for developing countries through the Just Energy Transition Partnership, provided they do not build any more coal plants. [11] It has been estimated that coal phase-out could benefit society by over 1% of GDP each year to the end of the 21st century, [12] so economists have suggested a Coasean bargain in which already developed countries help finance the coal phase-out of still developing countries. [13]

The health and environmental benefits of getting rid of coal quickly exceed the costs, [14] but some countries still favor coal, [15] and there is much disagreement about how quickly it should be phased out. [16] [17] However many countries, such as the Powering Past Coal Alliance, have already or are transitioned away from coal; [18] the largest transition announced so far being Germany, which is due to shut down its last coal-fired power station between 2035 and 2038. [19] Germany is using reverse auctions to compensate coal-fired power plants for shutting down ahead of schedule. [20] Some countries are making a just transition and pensioning off coal miners early. [21] However, low-lying Pacific Islands are concerned the transition is not fast enough and that they will be inundated by sea level rise, so they have called for OECD countries to completely phase out coal by 2030 and other countries by 2040. [22] Phasing down coal was agreed at the 2021 United Nations Climate Change Conference in the Glasgow Climate Pact. Vietnam is among few coal-dependent developing countries that pledged to phase out unabated coal power by the 2040s or as early as possible thereafter [23]

In 2022–2023 coal use rose. The IEA pointed out high gas prices due to the Russian invasion of Ukraine and extreme weather events as contributors to the increase. [24] [25] The G7 countries have agreed to close all coal power plants by 2030–2035 unless their greenhouse gases are captured. [26] [27]

Peak coal

World map which shows which countries made zero-coal pledges, and the year by which they aim to achieve this. Coal-phase-out-timeline.svg
World map which shows which countries made zero-coal pledges, and the year by which they aim to achieve this.
This section is an excerpt from Peak coal.[ edit ]

Use of coal is expected to peak in the mid-2020s. [28] [29] Historically, it was widely believed that the supply-side would eventually drive peak coal due to the depletion of coal reserves. However, since the increasing global efforts to limit climate change, peak coal has been driven by demand. [30] This is due in large part to the rapid expansion of natural gas and renewable energy. [30] As of 2024 over 40% of all energy sector CO2 emissions are from coal, and many countries have pledged to phase-out coal. [31]

The peak of coal's share in the global energy mix was in 2008, when coal accounted for 30% of global energy production. [30] Coal consumption is declining in the United States and Europe, as well as developed economies in Asia. [30] However production increased in India, Indonesia and China, which offset the falls in other regions. [32] Global coal consumption reached an all time high in 2023 at 8.5 billion tons, [33] but is expected to reach a new record of 8.77 billion tons in 2024. [34]

In 2024 the International Energy Agency said: “After having grown by more than 1.2 billion tonnes since 2020, global coal demand is set to plateau in the next three years, reaching around 8.87 billion tonnes by 2027. Given the slow progress of deploying carbon capture, utilisation and storage (CCUS) technologies in the sector, carbon dioxide emissions from coal are not expected to decline in that period, based on today’s policy settings and market trends. While coal demand in advanced economies continues to shrink, this decline is expected to be offset by growth in a few emerging and developing economies, such as India, Indonesia and Viet Nam, where the additional energy demand associated with economic growth is set to be met with a variety of sources, including coal. Despite increasing renewable electricity generation, India is expected to see the largest increase in coal use in the coming years, driven by consumption from the power sector and industry. Still, as has been the case for 25 years, China, which consumes 30% more coal than the rest of the world put together, will continue to define global trends.” [35]

Switch to cleaner fuels and lower carbon electricity generation

Top five coal consuming countries to 2017, US EIA data. Top 5 coal consuming countries to 2017, US EIA data.png
Top five coal consuming countries to 2017, US EIA data.
Coal use for power by country and territory in 2022-23. Powering Past Coal Alliance (PPCA) membership also indicated. _ Coal >50% of grid electricity _ Coal 10-50% of grid electricity _ Coal <10% of grid electricity _ Coal <0.1% of grid electricity _ Coal >50% of grid electricity (PPCA member) _ Coal 10-50% of grid electricity (PPCA member) _ Coal <10% of grid electricity (PPCA member) _ No data Global coal use in power generation map.png
Coal use for power by country and territory in 2022–23. Powering Past Coal Alliance (PPCA) membership also indicated.
_ Coal >50% of grid electricity
_ Coal 10–50% of grid electricity
_ Coal <10% of grid electricity
_ Coal <0.1% of grid electricity
_ Coal >50% of grid electricity (PPCA member)
_ Coal 10–50% of grid electricity (PPCA member)
_ Coal <10% of grid electricity (PPCA member)
_ No data

Coal-fired generation puts out about twice as much carbon dioxide—around a tonne for every megawatt hour generated—as electricity generated by burning natural gas at 500 kg of greenhouse gas per megawatt hour. [37] In addition to generating electricity, natural gas is also popular in some countries for heating. One major intergovernmental organisation (the G7) committed in 2021 to end support for coal-fired power stations within the year. [38]

The use of coal in the United Kingdom declined as a result of the development of North Sea oil and the subsequent Dash for Gas during the 1990s. In Canada some coal power plants, such as the Hearn Generating Station, switched from coal to natural gas. In 2022, coal power in the United States provided less than a fifth of its electricity, down from almost half in 2008, [39] due to the plentiful supplies of low cost natural gas obtained by hydraulic fracturing of tight shale formations. [40]

Coal phase-out by country

In order to meet global climate goals and provide power to those that do not currently have it coal power must be reduced from nearly 10,000 TWh to less than 2,000 TWh by 2040. [44] [ needs update ]

Africa

South Africa

The country is attempting a just transition away from coal in South Africa. [45] Three coal power plants are due to be decommissioned in 2030. [46] Academics said in 2024 that workers in the south-west part of Mpumalanga need new jobs. [47]

Americas

Canada

The Nanticoke Generating Station in Ontario, one of the largest power plants to be shut as part of Ontario's coal phaseout. Nanticoke Generating Station 2.jpg
The Nanticoke Generating Station in Ontario, one of the largest power plants to be shut as part of Ontario's coal phaseout.

In 2014, Ontario was the first jurisdiction in North America to eliminate coal in electricity generation. [48] In 2016, the Government of Canada announced plans to phase out coal-fired electricity generation by 2030. [49] Alberta followed up in 2024 with phasing out its last coal power plant in Genesee. [50] As of 2024, only three provinces burned coal to generate electricity: Nova Scotia, New Brunswick, and Saskatchewan, [51] Canada aims to generate 90% of its electricity from non-emitting sources by 2030. [52]

United States

These paragraphs are an excerpt from Coal power in the United States § Phase out.[ edit ]
Coal generated about 19.5% of the electricity at utility-scale facilities in the United States in 2022, down from 38.6% in 2014 [53] and 51% in 2001. [54] In 2021, coal supplied 9.5  quadrillion British thermal units (2,800  TWh) of primary energy to electric power plants, [55] which made up 90% of coal's contribution to U.S. energy supply. [56]

Asia

China

As of 2020, over half of the world's coal-generated electricity was produced in China. [57] In 2020 alone, China added 38 gigawatts of coal-fired power generation, over three times what the rest of the world built that year. [58]

China is confident of achieving a rich zero carbon economy by 2050. [59] In 2021, the government ordered all coal mines to operate at full capacity at all times, including holidays; approved new mines, and eliminated restrictions on coal imports. [60] In November 2021, China reached record coal production levels, breaking the previous historic record, established in October 2021. [61]

China's exceedingly high energy demand pushed the demand for relatively cheap coal-fired power. Serious air quality deterioration resulted from the massive use of coal and many Chinese cities suffered severe smog events. [62] [ needs update ]

As a consequence, the region of Beijing decided to phase out all its coal-fired power generation by the end of 2015, [63] a plan which it implemented with the closure of the Huaneng Beijing Thermal Power Plant in 2017. Despite this, however, the city imports most of its electricity from other coal-burning areas of the country, [64] and the Huaneng plant has been temporarily reopened several times. [65]

In 2024 the International Energy Agency said: “Reforms should accompany coal plants in their transition from energy suppliers to providers of flexibility services. While coal plants will continue to play a key role in providing grid stability and flexibility, their contribution in terms of electricity generation will have to decline. This shift requires targeted policies that support coal plants in becoming providers of system services, such as frequency regulation and ramping support, and seasonal flexibility, to ensure a smooth transition towards a more flexible and low-carbon power system.” [66]

India

Coal Consumption (all sources) in India, 1965-2023 Coal-Consumption-In-India.png
Coal Consumption (all sources) in India, 1965–2023

India is the third largest consumer of coal in the world. India's federal energy minister is planning to stop importing thermal coal by 2018. [67] The annual report of India's Power Ministry has a plan to grow power by about 80 GW as part of their 11th 5-year plan, and 79% of that growth will be in fossil fuel–fired power plants, primarily coal. [68] India plans four new "ultra mega" coal-fired power plants as part of that growth, each 4000 MW in capacity. As of 2015, there are six nuclear reactors under construction. In the first half of 2016, the amount of coal-fired generating capacity in pre-construction planning in India fell by 40,000 MW, according to results released by the Global Coal Plant Tracker. [69] In June 2016, India's Ministry of Power stated that no further power plants would be required in the next three years, and "any thermal power plant that has yet to begin construction should back off." [70]

In cement production, carbon neutral biomass is being used to replace coal for reducing carbon foot print drastically. [71] [72]

In 2025 the International Energy Agency said that “it is essential to consider the external costs associated with different fuel types, such as health impacts from air pollution and carbon emissions. Coal-based power generation contributes significantly to air pollution, leading to respiratory and cardiovascular diseases, and emits large amounts of CO2. By incorporating these externalities into fuel prices (e.g., through a robust carbon price signal), the true cost of coal power becomes apparent. This adjustment could make natural gas more competitive in the merit order, as it produces fewer pollutants and lower carbon emissions compared to coal. Reflecting these external costs in fuel pricing would not only promote cleaner energy sources but also improve public health and support climate goals.” [73]

Indonesia

This section is an excerpt from Indonesia Just Energy Transition Partnership.[ edit ]

The Indonesia Just Energy Transition Partnership is a 20 billion dollar agreement to decarbonise Indonesia's coal-powered economy, launched on 15 November 2022 at the G20 summit. [74] [75] [76] This Just Energy Transition Partnership comes after the first such agreement, the South Africa JET-IP was announced in 2021 as a partnership with Germany, France, the UK and US. [77] [78] The agreement with Indonesia involves all G7 countries as partners, including Canada, Italy and Japan. It also includes Denmark and Norway. [79] [80] The JETP aims to develop a comprehensive investment plan (the JETP Investment and Policy Plan) to achieve Indonesia's decarbonisation goals. [81]

Under the JETP, Indonesia aims to reach net-zero emissions of greenhouse gases from electricity production by 2050, bringing forward its target by a decade, and reach a peak in those emissions by 2030. According to two think tanks, the $20bn allocated under the programme are insufficient for these goals. [82]

On the sideline of the same conference, the Asian Development Bank signed an agreement with Cirebon Electric Power to open discussions on accelerated retirement of the Cirebon Steam Power Plant. [83] However as of 2025 the JETP is in doubt. [84]

Japan

Japan, the world's third-largest economy, made a major move to use more fossil fuels in 2012, when the nation shut down nuclear reactors following the Fukushima accident. Nuclear, which had supplied 30 percent of Japanese electricity from 1987 to 2011, supplied only 2 percent in 2012 (hydropower supplied 8 percent). Nuclear electricity was replaced with electricity from petroleum, coal, and liquified natural gas. As a result, electricity generation from fossil fuels rose to 90 percent in 2012. [85] By 2021, Japan generated 30% of its electricity from coal. [86]

In January 2017, the Japanese government announced plans to build 45 new coal-fired power plants in the next ten years, largely to replace expensive electricity from petroleum power plants. [87] Japan has 140 coal plants of which 114 are classified as inefficient and as a result the government intends to shut these down by 2050 to meet its climate commitments. [88]

Philippines

The Philippines has stop issuing permits for the construction of new greenfield coal power plants in 2020. [89] Six provinces have passed ordinance banning coal power plants in their jurisdiction as of 2019 namely: Bohol, Guimaras, Ilocos Norte, Masbate, Negros Oriental, Occidental Mindoro, and Sorsogon [90]

The Department of Energy in December 2023 has urged for the voluntary early and orderly decommissioning or repurposing of existing coal-fired power plants in line of the Philippines' goal to have a 50 percent renewable energy share by 2040. [91] [92]

South Korea

In 2024 think tank Ember said “South Korea’s coal generation in 2023 was only 21% below its 2017 peak. It is one of the few OECD countries that has seen a large rise in electricity demand, which has doubled since 2000. The rise in clean power was not enough to meet this demand growth. As of 2023, coal generation was almost twice as high as in 2000, even though it has fallen from its peak. [93]

Turkey

This section is an excerpt from Coal power in Turkey § Phase-out.[ edit ]

In 2019, the OECD said that energy and climate policies that are not aligned in future may prevent some assets from providing an economic return due to the transition to a low-carbon economy. [94] The average Turkish coal-fired power station is predicted to have higher long-run operating costs than renewables by 2030. [95] The insurance industry is slowly withdrawing from fossil fuels. [96]

In 2021 the World Bank said that a plan for a just transition away from coal is needed, [97] and environmentalists say it should be gone by 2030. [98] The World Bank has proposed general objectives and estimated the cost, but has suggested government do far more detailed planning. [99] According to a 2021 study by several NGOs if coal power subsidies were completely abolished and a carbon price introduced at around US$40 (which is lower than the 2021 EU Allowance) then all coal power stations would close down before 2030. [100] According to Carbon Tracker in 2021 $1b of investment on the Istanbul Stock Exchange was at risk of stranding, including $300 m for EÜAŞ. [101] : 12  Turkey has $3.2 billion in loans for its energy transition. [102] Small modular reactors have been suggested to replace coal power. [103] A 2023 study suggests the early 2030s and at the latest 2035 as a practical target for phase-out. [104] A 2024 study says that, although some plants would shutdown due to technological or economic obsolescence, a complete phase out by 2035 would require additional capital expenditure on electricity storage: however the study did not consider demand response or electricity trading with the EU. [105]

Some energy analysts say old plants should be shut down. [106] Three coal-fired power plants, which are in Muğla Province, Yatağan, Yeniköy and Kemerköy, are becoming outdated. However, if the plants and associated lignite mines were shut down, about 5000 workers would need funding for early retirement or retraining. [107] There would also be health [108] and environmental benefits, [109] but these are difficult to quantify as very little data is publicly available in Turkey on the local pollution by the plants and mines. [110] [111] Away from Zonguldak mining and the coal-fired power plant employ most working people in Soma district. [112] According to Dr. Coşku Çelik "coal investments in the countryside have been regarded as an employment opportunity by the rural population". [113]

According to SwitchCoal a 20 billion dollar investment in converting 10 plants to solar, wind and batteries would make an extra 13 billion dollars profit over 30 years. [114] They assumed no carbon pricing and estimated lignite opex at 1 UScent per kWh. [115] : 24  They say this would save 35 megatonnes of emissions a year by installing 15GWp of solar, 8 of wind and 0.7 GW battery. [115] : 33 

In 2024 thinktank Ember wrote that: “Four of the 38 OECD countries saw coal generation in 2023 fall by less than 30% from its peak: Japan, South Korea, Colombia and Mexico. Only one OECD country – Türkiye – has not yet passed the peak of coal power, setting a new record for coal generation in 2023.

Türkiye set a new coal generation record in 2023, overtaking Poland to become the second largest coal generator in Europe after Germany, with coal accounting for 37% of its electricity supply (118 TWh). However, coal is not booming in Türkiye: it was only 5% higher in 2023 than five years before in 2018. At that time, Türkiye was planning the world’s third-largest increase in coal power plants, but these have since been cancelled, avoiding a major increase in coal. Unlocking Türkiye’s untapped solar potential can help meet growing demand and replace coal power.” [116] : 9 

Vietnam

At the COP 26 in 2021, Vietnam pledged to phase out unabated coal power by the 2040s or soon thereafter. [117] This is part of the country's announcement to achieve net zero emissions by 2050. In December 2022, Vietnam joined the Just Energy Transition Partnership. Under this partnership, the country will receive $15.5 billion in the next 3–5 years to accelerate decarbonising its electricity sector, including shifting coal power use peak by 2030 instead of 2035. With coal contributing to about 50% of the electricity generation, Vietnam is facing numerous challenges to phase out coal while electricity demand is increasing around 10%/year. It could, however, ramp up the penetration of solar and wind power, particularly offshore wind, to replace coal power [118]

Europe

Finland

In 2019, Finland enacted a ban of coal use for energy purposes starting on 1 May 2029, ahead of the 2030 schedule discussed earlier. [119] [120] As of 2020, coal represented only 4.4% of electricity generated in the country. [121] Finland is a founding member of the Powering Past Coal Alliance along 18 other countries. [122] [123]

France

On 30 December 2017, Emmanuel Macron signed a law planning the end of fossil-fuel extraction in French territories. Emmanuel Macron (2017-05-29, cropped).jpg
On 30 December 2017, Emmanuel Macron signed a law planning the end of fossil-fuel extraction in French territories.

The French government intends to close or convert the nation's last four coal plants by 2022. [124] [125] In April 2021 the Le Havre coal plant unit was shuttered. [126]

In December 2017, to fight against global warming, France adopted a law banning new fossil fuel exploitation projects and closing current ones by 2040 in all of its territories. France thus became the first country to programme the end of fossil fuel exploitation. [127] [128]

Germany

3500-4000 environmental activists blocking a coal mine to limit climate change (Ende Gelande 2016). Ende Gelaende Einzug Tagebau Tag 1.jpg
3500–4000 environmental activists blocking a coal mine to limit climate change (Ende Gelände 2016).

Coal power phase-out in Germany  [ de ] is in progress. Phase-out of burning coal in Germany in power plants is scheduled for 2038, but market forces may mean that some coal plants will close earlier. [129]

Italy

As of 2020, Italy still has nine coal power plants, for a total capacity of 7702 MW. Enel, Italy's largest power generator, intends to shut down three power plants in early 2021. [130] [131]

Poland

In 2024 over half of electricity in Poland was generated by coal. [132] Katowice has joined the Powering Past Coal Alliance. [133]

Spain

In October 2018, the First government of Pedro Sánchez and Spanish trade unions settled an agreement to close ten Spanish coal mines at the end of 2018. The government pre-engaged to spend 250 million Euro to pay for early retirements, occupational retraining and structural changes. In 2018, about 2.3 percent of the electric energy produced in Spain was produced in coal-fired power stations. [134]

Sweden

In 2019 coal was still used to a limited extent to fuel three co-generation plants in Sweden that produced electricity and district heating. The operators of these plants planned to phase out coal by 2020, [135] 2022 [136] and 2025 [137] respectively. In August 2019 one of the three remaining coal burning power producers announced that they had phased out coal prematurely in 2019 instead of 2020. [138] Värtaverket was scheduled to close in 2022, but closed in 2020. [139] This was the last coal plant in Sweden, and its closure made Sweden coal free.

In addition to heat and power coal is also used for steel production, there are long-term plans to phase out coal from steel production: Sweden is constructing hydrogen-based pilot steel plant to replace coke and coal usage in steel production. [140] Once this technology is commercialized with the hydrogen generated from renewable energy sources (biogas or electricity), the carbon foot print of steel production would reduce drastically. [72]

United Kingdom

Having been an initiator of the Industrial Revolution, the last coal power station in the United Kingdom (Ratcliffe-on-Soar Power Station in England) stopped operating on 30 September 2024. [141] Scotland's last coal power station closed in 2016, [142] Wales' last coal power station closed in December 2019 [143] and Northern Ireland's last coal power station closed in September 2023. [144]

Coal power dominated the UK's electricity mix for decades but began to decline after the Dash for Gas in the 1990s, with significant competition from new combined cycle gas turbines. The trend continued after subsequent environmental laws brought in during the early 21st century to improve air quality, reduce greenhouse gas emissions and incentivise the rollout of renewable energy. [141] In generating capability there was initially the closure of the Hinton Heavies, followed by the closure or conversion to biomass of the remaining coal plants by 2024. In the final few years of coal power in the UK, in 2018 it was less than at any time since the Industrial Revolution. The first "coal free day" took place in 2017. Coal supplied 5.4% of UK electricity in 2018, down from 30% in 2014, [145] and 70% in 1990. [141] Gas-fired power stations continue to provide some firm service. [146]

Oceania

Australia

This section is an excerpt from Coal in Australia § Phase-out.[ edit ]
Power stations are expected to stop burning coal by 2038 or earlier. [147] The electricity market has been moving away from coal as renewables, especially solar power are developed. [148] The proportion of electricity generated by coal-fired power stations dropped to a record low of less than 50% in early 2025. [149]

New Zealand

In October 2007, the Clark Labour government introduced a 10 year moratorium on new fossil fuel thermal power generation. [150] The ban was limited to state-owned utilities, although an extension to the private sector was considered. The new government under MP John Key (NZNP) elected in the 2008 New Zealand general election, repealed this legislation.[ citation needed ]

In 2014, almost 80 percent of the electricity produced in New Zealand was from sustainable energy. [151] On 6 August 2015, Genesis Energy Limited announced that it would close its two last coal-fired power stations. [152]

See also

References

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