The United States accounted for more than one-third of the increase in global carbon dioxide (CO₂) emissions in 2025, as higher natural gas prices triggered a significant shift back to coal-fired power generation, according to the Energy Institute Statistical Review of World Energy 2026, published by the Energy Institute in partnership with Ember and in collaboration with Kearney and KPMG.
The report highlights that global energy-related CO₂ emissions increased 1.1 percent to 35,806.2 million tonnes in 2025, while total greenhouse gas emissions, including energy and other sources, also rose 1.1 percent to 41,000 million tonnes of CO₂ equivalent. Although renewable energy achieved record expansion during the year, fossil fuels continued to dominate the global energy system, accounting for 86 percent of total energy supply (TES).
US Coal Revival Drives Higher Emissions
The United States recorded the largest increase in carbon emissions among major economies, with CO₂ emissions rising 3.2 percent in 2025. In absolute terms, the increase in US emissions was four times greater than China’s, making the country the single largest contributor to the growth in global emissions.
A key reason was the sharp rise in natural gas prices. US natural gas prices increased 50 percent, making coal-fired electricity generation more economical for utilities. As a result, coal consumption increased 10 percent, while coal-fired power generation surged 13 percent, reversing part of the country’s recent emissions reductions.
The report notes that coal remains one of the world’s most carbon-intensive fuels, demonstrating how changing fuel economics can quickly influence electricity generation and carbon emissions despite long-term clean energy investments.
Global Carbon Emissions Continue Rising
Worldwide, energy-related carbon emissions continued to climb despite rapid renewable energy deployment.
Global energy-related CO₂ emissions reached 35,806.2 million tonnes, up 1.1 percent from 2024. Total greenhouse gas emissions from all sources increased to 41,000 million tonnes of CO₂ equivalent, also representing 1.1 percent annual growth.
Europe recorded a relatively modest 0.5 percent increase in energy-related CO₂ emissions. At the regional level, North America posted the second-fastest growth in emissions at 2.7 percent, behind Africa’s 2.8 percent. North America added 152.3 million tonnes of CO₂, reversing its 10-year average annual decline of 0.7 percent in energy-sector emissions. The report also identified North America as the only region where the carbon intensity of energy increased during 2025.
China and India Keep Emissions Growth Below Global Average
China limited its CO₂ emissions growth to just 0.3 percent, significantly below the global average, despite maintaining high levels of coal use. The country installed more wind and solar capacity than the rest of the world combined, enabling coal-fired electricity generation to decline even as electricity demand expanded rapidly.
China’s domestic coal production has increased 82 percent over the past 20 years, yet imported coal still accounted for 11 percent of domestic coal supply in 2025.
India also outperformed the global average, with CO₂ emissions rising 0.9 percent. The country reduced electricity generation from coal, oil and natural gas, while renewable electricity generation increased by nearly 24 percent.
Coal Consumption Remains at Record Levels
Global coal consumption increased 0.7 percent in 2025, extending record demand despite the accelerating growth of renewable energy.
Coal remained one of the major energy sources reaching all-time highs, although renewable energy became the largest contributor to global energy supply growth for the first time outside a recession.
Country-level coal trends varied significantly:
United States: Coal consumption increased 10 percent, driven by a 50 percent rise in natural gas prices, while coal-fired electricity generation climbed 13 percent.
China: Coal consumption remained broadly flat as slower coking coal demand and record solar generation offset growth in electricity demand.
India: Coal consumption increased only 0.6 percent, well below its 10-year average annual growth rate of 3.6 percent. Domestic coal production reached a record 17.9 exajoules, meeting approximately 78 percent of India’s coal demand, although the country remained a net coal importer.
Renewables Lead Energy Supply Growth Despite Fossil Fuel Dominance
Global total energy supply (TES) increased 1.7 percent in 2025, with every major energy source reaching record levels for the second consecutive year.
Coal contributed 1.1 exajoules (EJ) to global energy supply growth, compared with:
Renewables: 3.3 EJ
Oil: 2.5 EJ
Natural gas: 2.4 EJ
Nuclear: 0.4 EJ
Hydropower: 0.1 EJ
For the first time outside a recession, renewables contributed more to global energy supply growth than coal, oil or natural gas, marking an important milestone in the global energy transition. However, continued growth in overall energy demand meant that clean energy additions were not sufficient to fully replace fossil fuels.
Energy Security and Fuel Prices Continue to Shape the Transition
The findings illustrate that energy security, fuel affordability and commodity prices remain major determinants of electricity generation choices. Temporary increases in fossil fuel prices can rapidly alter the fuel mix, as demonstrated by the US return to coal during 2025.
The report concludes that achieving global climate goals will require sustained investments in renewable energy, electricity grids, battery storage, energy efficiency and electrification. Stable long-term energy policies will also be essential to reduce dependence on volatile fossil fuel markets while accelerating the transition toward low-carbon energy systems.
BABURAJAN KIZHAKEDATH
