Coal remains a significant global power source, accounting for 34% of global electricity generation in 2020. While many countries are gradually replacing coal for power generation, it remains crucial for iron and steel production until newer technologies become available. The International Energy Agency (IEA) envisions ending unabated coal generation by 2040 in its Net Zero Emissions by 2050 Scenario. Despite global efforts to reduce reliance on coal, several countries still heavily depend on it, and demand is surging in some areas. Despite global efforts to reduce reliance on coal, several countries still heavily depend on it, and demand is surging in some areas. South Africa is the most coal-dependent nation, with coal accounting for 69% of its primary energy consumption.

China and India together account for two-thirds of the world's coal power generation. In 2022, coal accounted for 55% of primary energy use in both China and India. While the share of coal power has been falling slightly in China and remained fairly flat in India, both countries continue to approve and build new coal plants to meet growing demand, so coal power use is still rising overall. In Indonesia, the share of electricity generated from coal increased marginally to a new record high of 61.8% in 2023. The Philippines saw a sharp increase to 61.9% in coal share in generation in 2023, making it the most coal-dependent nation in Southeast Asia. Vietnam relies heavily on coal, with 45% of its primary energy use coming from coal in 2022

Several factors contribute to the continued use of coal worldwide. Economically, coal is often an affordable and readily available energy source, particularly for countries with substantial domestic coal reserves. Furthermore, the rapidly increasing electricity demand in countries such as China and India needs to revamp the ongoing use of coal to satisfy energy requirements. The coal industry also provides significant employment in some countries, including China (3.4 million coal miners and 740,000 coal power plant workers) and India (1.4 million coal miners and 600,000 coal power plant workers). As of the end of 2023, 84 countries had agreed to phase out coal or not develop new unabated coal power plants, accounting for approximately 30% of current coal consumption for electricity generation.

Greece and the U.K. have achieved the fastest coal power reductions. By 2021, Belgium, Austria, Sweden, and Portugal had completed their phasedowns. Countries heavily reliant on coal, such as China, Indonesia, India, and South Africa, face significant challenges in decreasing their coal power use. Ensuring a just transition for coal-dependent communities is crucial, considering the large number of workers employed in the coal industry. Transitioning to renewable energy sources requires substantial investments and policy changes to incentivize the development and adoption of solar and wind power.