The number of new coal-fired power plants built around the world hit a “10-year high”...
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Carbon Brief
New coal plants hit ‘10-year’ global high in 2025 – but power output still fell
Abatify Summary
Nature & Climate Perspective
**Despite a surge in new coal plant installations, the drop in actual power generation suggests that renewable energy displacement is successfully mitigating the worst-case scenario for global carbon emissions and ecological degradation. **
- New coal infrastructure continues to threaten local ecosystems through land disruption, air pollution, and thermal water pollution, even when operated at lower capacity factors.
- The lock-in of fossil fuel capacity directly conflicts with global carbon budgets, putting immense pressure on natural carbon sinks (LULUCF) to absorb residual emissions.
- The expansion of coal capacity delays the absolute peak of emissions, threatening long-term ecological stability and accelerating feedback loops that degrade planetary boundaries.
Market & Policy Outlook
**The decoupling of coal capacity growth from actual power output exposes severe financial stranded asset risks and highlights the critical role of Article 6 mechanisms and SBTi targets in steering capital away from fossil fuels. **
- Building new coal assets violates the spirit of the ICVCM Core Carbon Principles (CCPs) regarding transition integrity, signaling a need for stricter Article 6.2/6.4 rules to prevent carbon lock-in.
- Declining utilization rates undermine the economic viability of these new assets, driving up the cost of capital for fossil projects while increasing the market liquidity of I-RECs and renewable energy investments.
- Under SBTi Net-Zero standards, corporates face tightening compliance mandates to aggressively phase out Scope 3 emissions associated with coal-heavy power grids, intensifying pressure on utilities to retire these newly built assets prematurely.
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