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Rapidly ending our current reliance on coal and fossil gas, relocating workers to new sectors, and eradicating public and private financing for fossil fuels will be critical to tackling the climate crisis.

One of the most fundamental challenges to achieving climate goals is ending the current reliance on coal and fossil gas in the power system. These two fuels generate around 60% of the world’s electricity, but their use creates vast amounts of greenhouse gas (GHG) emissions. 

Burning coal contributes around 75% of total carbon dioxide (CO2) emissions generated by the global power sector, with the remaining emissions primarily from the use of fossil gas. And power sector emissions account for about 25% of total global GHG emissions — the single largest sectoral contribution. 

Coal- and fossil gas-fired power need to be rapidly phased out. 

Backed by mounting scientific evidence and economic analysis, the best course of action is to quickly phase out fossil fuels and replace them with clean zero-carbon power sources. Coal consumption is declining in certain regions, such as North America and Europe, but not quickly enough. At the same time, the use of unabated fossil gas is increasing globally, creating a barrier to achieving the goals of the Paris Agreement.

While burning of fossil fuels in conjunction with technologies to capture and store CO2 emissions is technically feasible, there remain large uncertainties and risks of these carbon capture and storage technologies at scale. They are not economically competitive and do not eliminate all emissions, such as methane emissions during production and transport. This means carbon capture and storage technologies cannot be viewed as an alternative to zero-carbon power in the global displacement of fossil fuels. 

Efforts need to accelerate in order to limit warming to 1.5 degrees C.

The carbon intensity of power supply needs to be reduced by about 85% before 2030 and reach zero by 2050. The current scale and pace of change is not enough to meet the ambitions set forward in the Paris Climate Agreement; countries need to dramatically increase their zero-carbon electricity ambitions and actions. For example, the decline of coal needs to accelerate tenfold by 2030 in order to limit warming to 1.5 degrees C (2.7 degrees F).

Tracking progress on global outcomes

2228: Coal in electricity generation

Status: Well Off Track
Historical Data Methodology and Challenges:

Global and country-level data on coal electricity generation was downloaded from EMBER’s Electricity Data Portal by selecting the “Generation - yearly” data source and “% Share” metric. 

Target Methodology:

Targets were designed by Climate Action Tracker (CAT) through a combination of top-down and bottom-up methods to establish near- and long-term power generation targets. CAT first identified modeled pathways that limit global temperature rise to 1.5 degrees C (2.7 degrees F) with no or limited overshoot from the International Panel on Climate Change (IPCC) Sixth Assessment Report and then filtered them according to four pieces of criteria: 

  • Scenarios were published in or after 2018;             
  • Scenarios have good regional resolution;             
  • Bioenergy with carbon capture and sequestration deployment is restricted to an average of 5 gigatonnes of carbon dioxide per year (GtCO2/yr) from 2040 to 2060, and carbon removal from afforestation and reforestation is limited to an average of 3.6 GtCO2/yr from 2040 to 2060 and to an average of 4.4 GtCO2/yr from 2050 to 2100; and            
  • Scenarios are consistent with achieving net-zero greenhouse gas (GHG) emissions in the second half of the century, as stated in Article 4.1 of the Paris Agreement.

The median value from these scenarios formed the less ambitious bound of the power sector targets’ ranges, though CAT made several key adjustments to this global median to better account for equity considerations and feasibility constraints that will likely impact many developing countries’ capacities to transform the power sector. These included: assuming developed countries can reduce fossil fuels at the 75th percentile rate rather than the median rate, allowing developing countries to reduce coal at a slightly slower rate; limiting new fossil gas generation capacity and reallocating GHG savings to coal-fired power fleets; and increasing renewable energy generation to fill gaps in generation as a result of the previous adjustments. CAT then combined this analysis of modeled pathways from integrated assessment models (IAMs) with a bottom-up review of global energy system modeling efforts, including assessments of the feasibility and cost of different technologies. It compared targets derived from this bottom-up review with those developed using the 1.5 degrees C (2.7 degrees F) scenarios from IAMs (which served as a GHG emissions budget constraint). Using the adjusted median value from this filtered set of IAM scenarios as the less ambitious bound of the target range ensured compatibility with the 1.5 degrees C (2.7 degrees F) global temperature rise limit, while deriving the more ambitious bound of the target range from the bottom-up review provided a feasibility constraint on the target.

S-Curve Trajectory:

Changes depend partly on the adoption of renewable energy technologies, which will likely be nonlinear, as well as other factors like switches between multiple types of fossil fuel and changes in overall electricity demand, which are more likely to be incremental.

Of all the emissions generated by the global power sector, the burning of coal contributes the largest share. In fact, over 65% of power sector emissions are due to coal consumption. Therefore, the removal of coal from the global power fleet is fundamental to decarbonizing the power sector.

From 2000 to 2013, the share of coal in electricity generation remained stubbornly high, fluctuating between 38% and 41%. However, in the past decade it has gradually declined, with the share falling from 41% in 2013 to 34% in 2024.

While this trend marks a step in the right direction, the pace of change is far too slow. To reach the 2030 target of just 4%, coal’s share would need to drop ten times faster than it has in the past five years. By 2035, the target is 1%, and by 2040 virtually zero. With the rapid buildup of renewables and their decreasing costs, it is possible that the share of coal in power generation could decrease rapidly and nonlinearly.

At the country level, China alone is responsible for more than half of the world’s total coal power generation. Although coal decreased from 65% of power generation in 2019 to 58% in 2024, coal power generation in China grew in absolute terms due to increased electricity demand. Responsible for another 14% of the world’s coal power, India’s coal usage is holding steady at about 75% of its electricity generation, though also growing in absolute terms due to electricity demand. Ultimately, all countries must reduce their absolute amount of coal power generation in order to limit warming to 1.5 degrees C (2.7 degrees F).

2229: Unabated fossil gas in electricity generation

Status: Well Off Track
Historical Data Methodology and Challenges:

Global and country-level data on unabated fossil gas electricity generation was downloaded from EMBER’s Electricity Data Portal by selecting the “Generation - yearly” data source and “% Share” metric.

Target Methodology:

Targets were derived following methods from Climate Action Tracker (CAT) (2023). Critically, there is a difference in scope between targets presented in this series and in CAT: CAT establishes targets for the share of total fossil gas in electricity generation, while this series presents targets for unabated fossil gas. These targets are identical for 2030, 2035 and 2040. For 2050, the target for all fossil gas is 0%–1%, while it is 0% for unabated fossil gas. CAT uses a combination of top-down and bottom-up methods to establish near- and long-term power generation targets. CAT first identified modeled pathways that limit global temperature rise to 1.5 degrees C (2.7 degrees F) with no or limited overshoot from the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report and then filtered them, following four pieces of criteria: 

  • Scenarios were published in or after 2018;             
  • Scenarios have good regional resolution;             
  • BECCS deployment is restricted to an average of 5 gigatonnes of carbon dioxide per year (GtCO2/yr) from 2040 to 2060, and carbon removal from afforestation and reforestation is limited to an average of 3.6 GtCO2/yrr from 2040 to 2060 and to an average of 4.4 GtCO2/yr from 2050 to 2100; and            
  • Scenarios are consistent with achieving net-zero GHG emissions in the second half of the century, as stated in Article 4.1 of the Paris Agreement.

The median value from these scenarios formed the less ambitious bound of the power sector targets’ ranges, though CAT made several key adjustments to this global median to better account for equity considerations and feasibility constraints that will likely impact many developing countries’ capacities to transform the power sector. These included: assuming developed countries can reduce fossil fuels at the 75th percentile rate rather than the median rate, allowing developing countries to reduce coal at a slightly slower rate; limiting new fossil gas generation capacity and reallocating GHG savings to coal-fired power fleets; and increasing renewable energy generation to fill gaps in generation as a result of the previous adjustments.

S-Curve Trajectory:

Changes depend partly on the adoption of renewable energy technologies, which will likely be nonlinear, as well as other factors like switches between multiple types of fossil fuel and changes in overall electricity demand, which are more likely to be incremental.

Fossil gas, also known as natural gas, is the second-most used fuel in the global power sector, generating 22.3% of electricity as of 2024 and contributing 28% of total carbon dioxide (CO2) emissions. A further buildout of new fossil gas infrastructure globally would be incompatible with limiting global warming to 1.5 degrees C (2.7 degrees F) and would lock in emissions for decades to come. In addition, the production and transport of fossil gas generates significant quantities of fugitive methane emissions, a potent greenhouse gas (GHG). Such methane emissions from oil and gas operations need to be reduced.

The share of fossil gas in power generation rose steadily from 18% in 2000 to almost 24% by 2019. Since then, it has edged downward only slightly, falling to 22% in 2024. Unabated fossil gas’s share must be brought down to 5%-7% by 2030, 2% by 2035 and near-zero by 2040 to align with 1.5 degrees C-compatible pathways, which requires an acceleration more than seven times faster than the current slightly decreasing linear trend. But with the rapid buildup of renewables, the share of fossil gas in power generation could decrease rapidly and nonlinearly.

The United States is responsible for more than one-quarter of the world’s total gas power generation. Its gas power generation has steadily grown since the early 2000s as a share of the electricity mix and in absolute terms, as unconventional gas production ramped up. In Russia, which is responsible for another 8% of total gas power generation, gas has held steady as a share of generation but increased in absolute terms.

2230: Premature deaths from PM 2.5 air pollution

Status: Wrong Direction
Historical Data Methodology and Challenges:

Data was collected by selecting “Ambient particulate matter pollution” under “Health Impact” on the State of Global Air website.

Target Methodology:

This target also appears in the cities system; it reflects the health and equity improvements that result from phasing out fossil fuels. About half of PM2.5 impact is caused by the combustion of fossil fuel sources and indoor biomass burning. The targets are set assuming universal clean fuel access by 2030 (SDG 7.2), which would deliver a 20% reduction in PM2.5 deaths from 2015 levels by that year, and decarbonization by 2050, which would deliver a 50% reduction in PM2.5 deaths by that year.

Air pollution is the world’s leading environmental health risk factor. In 2019, about 7% of all deaths worldwide were attributable to exposure to fine inhalable particles, which is defined as particulate matter with a diameter of less than 2.5 micrometers (PM2.5). Nearly half of all exposure from fine particles is caused by unsustainable energy practices, including the combustion of fossil fuels.

Rapidly urbanizing countries in Africa and Asia have the highest levels of air pollution. This is caused by several factors, including lack of access to clean fuels for cooking and emissions from transportation and manufacturing industries. Nearly everyone in rapidly urbanizing low- and middle-income countries is currently exposed to PM2.5 levels that exceed the guidelines from the World Health Organization (WHO). Children, residents of low-income areas and Black, Indigenous, Hispanic, Asian and other communities of color are disproportionately impacted.

Sustainable Development Goal 7 aims to phase out biomass combustion for heating and cooking by 2030. If achieved, this would result in a 20% reduction in premature deaths from PM2.5 exposure as compared to 2015 levels (4.6 million), reducing the total to about 3.7 million.

Meeting three interrelated goals — the phasing out of internal combustion engines, thermal power generation (without pollution controls) and other fossil fuel combustion by 2050 — would translate to a 50% reduction in premature deaths from PM2.5 exposure as compared to 2015 levels, further reducing the total to about 1.9 million (author’s analysis). Thus, achieving reductions of 20% by 2030 and 50% by 2050 would help save millions of lives.

Unfortunately, this indicator is headed in the wrong direction, as evidenced by the continued increase in premature deaths from 1990 until 2021  resulting from air pollution. In 2020, there was a drop in premature deaths from 4.6 million in 2019 to 4.43 in 2020, likely as a result of the COVID-19 pandemic. However, in 2021, premature deaths increased again to 4.72 million. Premature deaths from PM2.5 exposure must peak immediately and fall quickly to meet the 2030 goal.

2231: Share of displaced coal and gas workers who regained employment

Status: Insufficient Data

Since renewable energies are likely to progressively replace fossil fuels in the coming years, many coal and gas workers may lose their jobs. Workers who lose their jobs due to closures or reductions associated with the energy transition will need support and providing this type of support to workers will be a main component of a just transition.

Both public and private initiatives can help retrain workers. For example, in the gold mining town Ballarat, Australia, companies have funded a wind power training tower, providing a space for students and ex-coal workers to gain skills and knowledge for important jobs in renewable energy.

Although there is currently no defined target or comprehensive public data for the percentage of displaced coal and gas workers that regained employment, this percentage should be as high as possible.

Key enablers and barriers to change

2137: Banks reducing lending for fossil fuel projects

Historical Data Methodology and Challenges:

The Public Finance for Energy Database by Oil Change International (OCI) publishes international public finance from multilateral development banks (MDBs), among other finance institutions from 2007-2022.. Among the 12 MDBs, four have reduced their finance to fossil fuels in the past 3 years.  

The terminologies and method of the Public Finance for Energy Database can be found here.

According to the International Energy Agency (IEA), all new fossil fuel exploration and production projects need to be halted to limit global warming to 1.5 degrees C (2.7 degrees F). Organizations have to restrict lending for projects exploring new fossil fuel reserves in order to prevent additional fossil fuels from entering the economy.

Data on economy-wide fossil fuel funding is scarce. However, one way to track fossil fuel financing is to focus on lending by major banks. This proxy metric provides an indication of wider trends in the economy.

Financial data on lending by 59 of the world’s largest banks shows that only four of these banks had begun restricting financing for fossil fuels as of 2021. By continuing to lend funds for fossil fuel projects, these organizations risk carbon lock-ins and stranded assets.

2138: Countries with coal phaseout plans

Historical Data Methodology and Challenges:

Data was collected by Our World in Data and compiled based on several data sources, including Powering Past Coal Alliance (PPCA), Beyond Coal EU, Bloomberg Global Coal Countdown, EMBER Climate and National announcements during the COP26 Climate Summit. Data was filtered based on countries with coal phaseout plans by 2030 and/or 2040.

The evidence is overwhelming: coal power has no place in 1.5 degrees C-compatible pathways.

To meet the ambitions of the Paris Agreement, global coal power should account for around 4% of total power generation by 2030, 0-1% by 2040 and be entirely phased out by 2050. Because the required pace of change to meet this goal is immense, it is vital that countries make strong commitments to remove coal. Such commitments should be backed by robust strategies.

As a means of assessing governmental commitments to decommissioning coal, this indicator tracks the number of countries with strategies in place to phase out coal power. As of 2021, only 35 countries had pledged to phase out coal power or to remain coal-free.

Several European countries, such as France, Spain and the United Kingdom, are aiming to phase out coal power by 2030, as are Canada and New Zealand. Currently, the three largest consumers of coal — China, India and the United States — do not have phaseout pledges.

Meanwhile, other countries have targets that do not align with the Paris Climate Agreement. Germany, for instance, is the fourth largest consumer of coal and aims to phase out coal power by 2038.

2139: Active programs to relocate workers from coal and gas sectors to other jobs or areas

Since replacing fossil fuels with renewable energy technology will displace oil and gas workers, new employment and training options should be part of policy commitments. For a transition to be just and equitable, it is essential that workers in fossil fuel industries receive support in finding new jobs or skills. This support can be provided in different ways, including public or private initiatives.

There are many different instruments that governments can use to improve employment opportunities and moderate the effects of demand shocks. These can include job search assistance and placement services, training programs, support for microenterprises and self-employment, subsidies for companies that hire unemployed individuals, and new job opportunities created by the government.

There is currently no global, comprehensive data on the number of active programs to relocate coal and gas workers to other jobs, so we are unable to assess progress for this indicator. It is likely that these programs are tracked at the country or local level, but this information has not yet been aggregated into a global database.

1895: Investments in early coal phaseout

Removing coal power from the global electricity mix would have the single biggest impact on driving down emissions in the power sector. 

Analysis shows that coal power should account for around 4% of total power generation by 2030 and be completely phased out by 2050, in order to meet the ambitions of the Paris Agreement. Yet, many existing coal plants have not reached the end of their economic life, meaning their fixed costs may not have been recouped by investors. Since coal plants are major investments, companies stand to lose large sums through the early retirement of coal power plants. Financial support is therefore required to facilitate early coal phaseouts. 

There is no publicly available global-scale data on investments in early coal phaseouts, although G7 countries have committed $46.7 billion to support phasing out coal in Indonesia, South Africa, and Vietnam. However, to continue to drive out coal from the power sector, this indicator should follow an increasing trajectory globally in the coming years.

Other shift Other shifts needed to transform the system

Rapidly scale up zero-carbon electricity generation

Collectively, governments, businesses and households must prioritize a rapid transition to more sustainable forms of energy, unlocking myriad benefits such as lower CO2 emissions, cleaner air and a net-benefit to the global economy.

Modernize power grids, scale energy storage and manage power demand

Scaling up efforts on power transmission and distribution, demand-side response and storage will require new policies to mobilize capital for new infrastructure; it will also create the market conditions for demand management programs and technological innovation.

Ensure energy access and a just and equitable transition for all

The transition of the world’s energy systems toward decarbonized, highly electrified models must benefit all people equitably.