Proposed coal mining capacity rose last year even as new mines came online at a sharply slower pace and clean energy continued to erode coal’s share of global electricity generation, according to Global Energy Monitor (GEM). 

Proposed capacity increased 11%, driven largely by India, where planned capacity doubled over the year, according to GEM’s Global Coal Mine Tracker. Meanwhile, commissioning of new coal mining capacity fell almost 40%, extending a decline from previous years. 

“The economic rationale for expanding coal mining becomes progressively weaker, as low-cost clean energy continues to displace coal,” Tiffany Means, a senior researcher at GEM and co-author of the report, said. 

The divergence comes as the International Energy Agency expects coal demand to decline by 2030 and wind and solar overtook coal in the global electricity mix for the first time in 2025. Yet several countries continue to support large pipelines of potential mines, creating the risk that projects approved today could enter production into a weaker long-term market. 

India accounts for much of the growth in proposed capacity, with its pipeline doubling over the past year. The country aims to produce 1.15 billion tonnes of coal in 2025-26 as it seeks to meet rising electricity demand during heatwaves, support economic growth and bolster energy security. 

The expansion contrasts with China and Australia, which drove much of the decline in newly commissioned capacity. 

China’s capacity additions fell 44% as the country expanded wind and solar generation while introducing measures to improve mine safety, tighten approvals for expansions and constrain coal production. 

Australia recorded an even steeper 96% decline in capacity additions amid weaker demand from its major export markets. A ban on new greenfield mines could further limit additions in coming years, according to the report.

Despite weakening demand and fewer mines entering production, GEM said several countries continue to maintain substantial development of pipelines. About 70% of proposed projects remain in the pre-permit or construction stages, leaving governments and investors with opportunities to prevent additional capacity from advancing. 

“Advancing more coal mining capacity in this market climate risks creating long-lived assets that can become increasingly uneconomic over time,” Dorothy Mei, project manager for the Global Coal Mine Tracker, said.