Global coal investment set to hit highest level since 2012, IEA says

Global investment in coal is on track to reach more than $180 billion in 2026, the highest level since 2012, driven largely by spending in China and India despite continued growth in renewable energy, the International Energy Agency (IEA) said.

In its latest World Energy Investment report, the Paris-based agency said coal investment this year is expected to rise about 4% from 2025, highlighting the continued role of the fuel in meeting energy demand, particularly in Asia.

China accounts for more than 65% of global coal investment, with spending on thermal coal production alone expected to exceed $100 billion this year, roughly double the level recorded a decade ago, according to the report.

India is the second-largest investor in coal and has tripled spending on the sector over the past decade as it seeks to boost domestic production and reduce import dependence. State-owned Coal India and other mining firms have added new production capacity through commercial mine auctions in recent years.

The IEA also noted rising investment in coal-related infrastructure in India, including rail networks used to transport coal from mines to consumers and ports. Spending on coal transport infrastructure is expected to increase to about $7 billion from $5 billion over the past decade.

Despite the increase in global investment, the IEA said the trend is heavily concentrated in China and India. Outside the two countries, investment in thermal and metallurgical coal is expected to decline for a second consecutive year.

Russia is projected to spend about $6 billion on coal production and related railway and port infrastructure aimed at serving Asian markets, while Australia is expected to invest about $4.5 billion in metallurgical coal projects, including new processing facilities.

The report also said the United States and Canada have streamlined approval processes for coal projects, contributing to a pipeline of 15 projects with a combined annual production capacity of about 34 million tonnes.

The IEA said geopolitical tensions in the Middle East could provide additional support for coal demand and investment if disruptions to oil and natural gas supplies persist.

Higher gas prices and tighter liquefied natural gas supplies in Asia have already prompted some utilities to increase coal-fired power generation and refurbish existing coal facilities to bolster energy security, the agency said.

While China remains the primary source of new coal capacity growth, the IEA said prolonged disruptions in global energy markets could encourage other countries to extend the operating lives of existing coal assets or increase investment in the sector.

Editing by Reiner Simanjuntak