In a landmark development for the global energy landscape, coal-fired electricity generation in both China and India fell in 2025, marking the first simultaneous decline in more than five decades and signaling a potential turning point in the world’s reliance on fossil fuels. According to a new analysis by the Centre for Research on Energy and Clean Air (CREA) commissioned by Carbon Brief, electricity produced from coal dropped by 1.6 per cent in China and 3 per cent in India during the year, a phenomenon not seen since 1973.
The reductions came even as overall power demand continued to grow in both nations, underscoring the strength of recent clean energy rollouts and the shifting dynamics of energy supply in the world’s two largest coal users. Record installations of renewable energy capacity played a central role in this shift, with China adding unprecedented volumes of solar and wind power and India also accelerating its deployment of clean technologies sufficient to meet a substantial portion of increased electricity needs.
Analysts say the declines in coal generation reflect more than just a temporary blip and could point toward a structural peak in coal’s influence on the power mix if renewable expansion continues unabated. China, which has historically been the world’s largest contributor to coal consumption and emissions growth, saw its coal output fall despite strong demand growth. In India, the reduction was aided not only by clean energy additions but also by milder weather and slower overall demand increases, factors that together helped push coal generation down for the first full year in decades.
The shift has broader implications for global carbon dioxide emissions. Between 2015 and 2024, the power sectors of China and India alone accounted for approximately 93 per cent of the rise in global CO2 emissions, meaning changes in their energy profiles could have a pronounced effect on efforts to curb climate change. Observers note that while total emissions from fossil fuels have not yet peaked in either country, the reduction in coal’s dominance in power generation is a critical step toward that objective.
The clean energy surge in China was especially striking, with massive additions of solar and wind capacity outpacing previous records and helping to offset the need for coal. India also registered strong growth in renewables, adding significant amounts of solar, wind and hydropower capacity throughout 2025. These advancements in clean energy were key drivers in reducing the share of coal and gas in both countries’ energy mixes, although experts caution that further acceleration will be necessary to sustain long-term declines in fossil fuel use.
Despite the positive trends, the report’s authors and analysts warn that challenges remain. The infrastructure needed to support intermittent renewable power, such as energy storage and grid upgrades, will require substantial investment. In addition, external factors like weather variations can still influence demand and generation patterns, potentially reversing short-term gains if not addressed through comprehensive energy planning.
The decline in coal use comes amid broader global debates about energy security and emissions. After the Russia-Ukraine war drove up gas prices in recent years and prompted some countries to revert to coal, this latest data suggests a renewed momentum toward cleaner energy sources. While it remains uncertain whether 2025 will be seen in hindsight as the definitive peak of coal power for China and India, the simultaneous drop in both nations — the first in more than half a century — represents a noteworthy milestone in the global energy transition.
