Just ten countries—China, India, Indonesia, Bangladesh, Russia, Zimbabwe, Kazakhstan, Vietnam, Laos, Philippines—accountable for 96% of global coal power development.
Bangladesh has been ranked as the second-largest coal power producer capacity country in South Asia and the fourth-largest globally, according to the Boom and Bust Coal Report 2025, published on April 3. Despite being one of the world’s most climate-vulnerable countries, Bangladesh has capacity to produce 8.9 gigawatts (GW) of coal power in 2024, representing 1.45% of global coal power production capacity.
India holds the top spot in South Asia and is the second-largest coal producer capacity globally, generating 110.9 GW, or 18.11% of the world’s total coal power.
In 2024, Bangladesh commissioned two new coal-fired units with a combined capacity of 1.3 GW. However, no new coal power projects have been proposed since 2019, and no additional units have started construction since 2021.
The amount of new coal power capacity commissioned in 2024 was double the number of canceled projects, with several ongoing projects failing to make significant progress.
For instance, in September 2024, the Orion power plant restructured its financing and redirected investments into a solar power project.
The report was jointly prepared by Global Energy Monitor, Dhoritri Rokhhay Amra (DHORA), Waterkeepers Bangladesh, the Centre for Research on Energy and Clean Air (CREA), E3G, Reclaim Finance, Sierra Club, Solutions for Our Climate, Kiko Network, Climate Action Network (CAN) Europe, Trend Asia, Policy Research Institute for Equitable Development (PRIED), Chile Sustentable, Polen Transiciones Justas, CEE Bankwatch Network, the Institute of Lawyers for the Protection of the Environment (INSAPROMA), the Africa Just Transition Network (AJTN), Araya International Institute and Beyond Fossil Fuels.
The report reveals that while global coal power expansion is declining, China and India continue to show an opposite trend holding China first position producing 420.8 GW (68.74%).
The report also reveals that just ten countries—China, India, Indonesia, Bangladesh, Russia, Zimbabwe, Kazakhstan, Vietnam, Laos, Philippines—accountable for 96% of global coal power development.
In 2024, Bangladesh’s electricity crisis has further intensified ongoing social and political unrest. The newly formed interim government in August 2024 is facing challenges such as a growing dollar shortage, the debt burden of domestic power plants, and financial losses from an expensive electricity purchase agreement with Adani’s Godda power plant in India.
Civil society organizations have called for a revision of Bangladesh’s Integrated Energy and Power Master Plan to prevent excessive capacity in the power and energy sector, over-reliance on imported fossil fuels, and the expansion of Japan’s proposed costly and technologically untested ammonia and hydrogen co-firing technology.
Despite having sufficient production capacity, Bangladesh faced fuel supply shortages and load shedding in 2024.
Similar disruptions are expected in 2025 due to debt repayment failures and an inability to stockpile adequate fuel before summer. The Matarbari power plant faced delays due to cost overruns and timeline extensions. While Units 1 and 2 were commissioned in December 2023 and 2024, respectively, the plant’s operations were disrupted in mid-2024 due to a court ruling banning coal imports to Matarbari. Additionally, in 2024, several key individuals were arrested on charges of corruption and embezzlement.
The Bashkhali power plant in Chattogram was unable to fully utilize its installed production capacity in 2024, despite its establishment at the end of 2023. Due to grid limitations and coal supply shortages similar to those at Matarbari, the plant operated at a reduced capacity.
Meanwhile, significant changes were observed in Bangladesh’s coal mining activities in 2024. By November 2024, the Barapukuria coal mine faced the risk of closure due to a lack of storage space, as the Barapukuria power plant was operating at limited capacity due to mechanical issues. Environmental concerns and allegations of corruption further intensified opposition to mining activities.
In March 2024, a planned mine associated with the Phulbari power plant signed a $1 billion financing agreement with PowerChina. However, local communities continued to oppose the project, demanding the cancellation of the mine’s approval and compensation for those affected by the project.
Bangladesh has yet to set a specific timeline for phasing out coal emissions or achieving carbon neutrality. In September 2024, a coalition of 75 organizations proposed that the government adopt a “coal-free” policy by 2027 and called for a legally binding just energy transition plan. Nationwide civic movements have highlighted the urgent need to phase out coal use. As coal-fired power plants, including the Rampal power plant, have been identified as major contributors to water pollution and fly ash emissions, civil society organizations argue that the rapid development of renewable energy infrastructure is crucial for addressing Bangladesh’s energy, economic, and environmental crises.
Member Secretary of DHORA and Coordinator of Waterkeepers Bangladesh Sharif Jamil said, ” Coal plants in Bangladesh are polluting our water, air and soil. Some of them are doing irreparable damage to the Sundarbans World Heritage site, some of them have seriously impacted the livelihoods of the fishers and farmers, particularly salt farmers. As a densely populated delta country it is harming our people and economy. We should lay out our roadmap to phase out all coal plants and expand renewable energy investment and production. China can play a significant role in collaborating with Bangladesh to ensure a just and rapid energy transition.”
Christine Shearer, Project Manager of Global Energy Monitor’s Global Coal Plant Tracker, said “Coal power set records last year but not the ones industry would like to see. Last year there was a harbinger of things to come for coal as the clean energy transition moves full speed ahead. But work is still needed to ensure coal power is phased out in line with the Paris climate agreement, particularly in the world’s wealthiest nations.”
Global Situation
In 2024, the global commissioning of new coal power plants totaled only 44 gigawatts (GW), the lowest in the past 20 years. In the European Union (EU27), the retirement rate of coal power plants has increased fourfold, and the United Kingdom has shut down its last coal power plant. However, China has set a record by constructing 94 GW of new coal power, while India has proposed 38 GW of new coal power projects.
Meanwhile, in the Organization for Economic Cooperation and Development (OECD) countries, the number of coal power projects has dropped to just five, compared to 142 in 2015. Indonesia has announced plans to phase out coal power by 2040, and Malaysia by 2044. However, in Africa, China has been financing coal power plants in Zimbabwe and Zambia, increasing coal expansion in the region.
