Stock Markets June 29, 2026 07:24 PM

U.S. Drives a Third of 2025 Global CO2 Uptick as Coal Use Rebounds

Higher gas prices and rising electricity demand push power producers toward coal, reversing a decade-long regional decline

By Marcus Reed
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A report from the Energy Institute, produced with Ember, Kearney Institute and KPMG, attributes roughly one-third of the 2025 increase in global energy-sector CO2 emissions to the United States. The rise was linked to a 10% jump in U.S. coal consumption and broader trends including faster growth in electricity demand than supply, stronger renewable generation, and higher oil and gas consumption in several regions.

U.S. Drives a Third of 2025 Global CO2 Uptick as Coal Use Rebounds
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Key Points

  • U.S. coal consumption rose 10% in 2025, accounting for about one-third of the global increase in energy-sector CO2 emissions.
  • Renewables led global supply growth with a 9.1% increase in power generation and a 30% surge in solar, while electricity demand grew 3% driven by EVs, data centres and AI.
  • Global oil consumption rose 1.3% to 103 million barrels per day and production increased 3.5%; gas demand growth was concentrated in Europe, the Middle East and North America.

The United States was responsible for about one-third of the global rise in carbon dioxide emissions from the energy sector in 2025, according to a report published by the Energy Institute in partnership with Ember, Kearney Institute and KPMG. The report points to higher gas prices that prompted some power generators to switch back to coal, reversing recent progress toward cleaner fuels.

Key data from the report

  • U.S. coal usage increased by 10% in 2025, contributing substantially to higher national emissions and helping drive the overall uptick in global emissions.
  • Worldwide energy-related carbon emissions rose 1.1% in 2025, reaching 35,806 million metric tons of CO2, with more than a third of the increase attributable to the United States.
  • North America bucked a decade-long trend of falling emissions - the region recorded a rise that contrasts with an average 0.7% decline over the prior 10 years.

The report also outlines broader shifts in energy supply and demand. Global energy supply expanded by 1.7% versus 2024, while renewables accounted for the largest portion of that growth. Renewable power generation rose 9.1% year-on-year, with solar output climbing about 30%.

Regional movements in emissions and fuel use

  • Europe saw energy-sector carbon emissions increase by 0.5% in 2025.
  • China recorded a 0.7% rise in energy-related emissions for the year.
  • In China, the use of gasoline and diesel continued to decline in 2025, extending the trend observed in 2024.

Electricity demand outpaced supply growth, rising 3% year-on-year. The report highlights electric vehicles, data centres and artificial intelligence as drivers of that stronger demand. At the same time, global oil consumption increased by 1.3% to 103 million barrels per day in 2025, a slightly larger gain than the 1.1% rise recorded in 2024, while oil production grew by 3.5%.

Natural gas demand expanded unevenly across regions, with growth concentrated in Europe, the Middle East and North America. The report notes that Europe and India rely on imports for nearly half of their gas supply.

The findings portray a mixed energy picture for 2025: robust renewable generation and rising overall energy supply coexist with an unexpected rebound in coal in the United States and pressure on electricity systems as demand accelerates.

Risks

  • Higher gas prices prompting a shift back to coal could increase emissions and pressure power-sector emissions targets - this primarily impacts the power generation and coal sectors.
  • Electricity demand growing faster than supply raises the risk of tighter power markets and potential reliability strains, affecting utilities, grid operators and energy-dependent industries.
  • Greater reliance on gas imports by regions such as Europe and India introduces supply vulnerability and market exposure for the natural gas and broader energy markets.

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