China and India defy energy transition with massive coal investments

China and India are among the biggest producers and consumers of coal globally, contributing significantly to the projected energy landscape. The International Energy Agency reported that in 2024, China approved nearly 100 gigawatts of new coal-fired plants and India authorized an additional 15 gigawatts to meet domestic demand. This surge in coal investments accounts for the majority of the global growth in this sector, with a 4% uptick expected in 2025, following a five-year period of 6% annual growth. Approximately 300 coal power plants are currently under construction in China, representing nearly 80% of all such constructions worldwide. Meanwhile, 46 coal plants are in progress in India. Financial support for coal has seen significant contributions, with Chinese banks leading with approximately $250 billion allocated to the industry between 2022 and 2024. The U.S. banks have also lent about $50 billion over the past three years, quitting initiatives aimed at promoting low-to-zero carbon targets. There is a consensus that coal, known for its carbon emissions, stands as a major obstacle in achieving a sustainable energy transition, yet both China and India seem reliant on coal. Opposition figures in the U.S. have made controversial statements about carbon dioxide, emphasizing its necessity while ignoring the environmental crisis caused by excessive emissions. Even as investments in renewable energy are increasing, the dependency on coal persists in these countries, revealing contradictions within the broader context of global energy transition efforts. The situation highlights the complexities faced by nations transitioning from fossil fuels to cleaner energy sources, and illustrates that the path ahead is fraught with challenges as many countries still count on coal to address their energy needs.