Global coal investment is projected to reach US$180 billion in 2026, marking a 14-year high and a 4 per cent increase on last year’s figures, according to the International Energy Agency’s (IEA) latest World Energy Investment report.
The IEA report indicates that China remains the dominant player, accounting for 70 per cent of all global coal investment.
Meanwhile, India is rapidly expanding its domestic production and transport infrastructure, alongside a targeted push to gasify 100 million tonnes of coal by 2030, supported by US$4 billion in government incentives.
Southeast Asian nations have also funnelled US$110 billion into the sector since 2015, lifting coal’s share in the regional energy mix from 20 per cent to 30 per cent.
Global industry body FutureCoal welcomed the findings, stating that geopolitical uncertainty, rising electricity demand, and a renewed global focus on grid reliability and supply resilience are driving investment back into coal infrastructure and modernisation.
FutureCoal CEO Michelle Manook said the data demonstrates a clear shift in global energy investment priorities.
“These findings confirm that energy security will not be achieved through ideology. It is achieved through diversity, reliability, and affordability, and those principles are once again driving investment decisions,” Manook said.
According to FutureCoal research, 90 per cent of new coal-fired capacity coming online this year will utilise advanced supercritical and ultra-supercritical technologies.
The group argues that modern investments are aligning with its Sustainable Coal Stewardship (SCS) framework, which focuses on emissions reduction, carbon capture, and high-efficiency operations rather than abandoning coal entirely.
The trend extends to Western economies, with the US Department of Energy committing US$625 million last year towards coal plant retrofits, recommissioning, and grid reliability initiatives.
FutureCoal noted that international financial institutions must pivot to fund these cleaner, upgraded technologies to support realistic global transition goals.
“Investing in coal does not mean abandoning emissions. These countries are pursuing both through investment in technologies that improve the performance of coal assets while supporting reliability, affordability and lower-emission outcomes,” Manook said.
“The world is investing in coal because the world still needs coal. The question is whether governments, investors and financial institutions will support the technologies that make coal cleaner, more efficient, and more sustainable. That is precisely what SCS is designed to achieve.”
