Despite global efforts to combat climate change, coal consumption continues to rise worldwide. In 2022, coal consumption hit record levels for the second consecutive year, driven partly by soaring gas prices following the Russian invasion of Ukraine. More than a third of global electricity generation in 2022 came from coal, leading to a surge in CO2 emissions, especially in Asia's emerging economies.

However, the International Energy Agency (IEA) warns that the world is not on track to meet climate goals. To achieve carbon neutrality by 2050, global coal consumption must decrease by 55% by 2030 and cease entirely by 2040, according to the IEA. Recognizing this urgency, the G-7 energy and environment ministers have agreed to phase out coal power by 2035.

Germany, with 32.8% of its electricity coming from coal in 2022, faces challenges in meeting this commitment. While a political agreement aims for a coal exit by 2030 in western regions, lignite coal in eastern states will continue until 2038. However, market forces could accelerate the phase-out, with analysts predicting a market-driven coal exit by 2030 due to rising carbon prices.

In contrast, some European nations have made significant progress in reducing coal dependence, such as France and the United Kingdom, which prioritize nuclear and renewable energy sources. Italy, traditionally reliant on gas, aims to end coal power on its mainland by 2027, with nuclear energy potentially playing a role in its 2050 energy plan.

In the United States and Japan, coal remains a significant part of the energy mix. Japan plans to continue using coal with carbon capture and storage (CCS) technologies post-2035. However, CCS implementation remains limited globally, with only four operational plants worldwide.