Coal demand rises globally amid energy transition challenges

In 2026, coal has seen an unexpected resurgence in the global energy market, challenging the ongoing transition toward clean energy. The International Energy Agency (IEA) projects a 1.4% increase in coal-based electricity generation by the end of the year.

This shift is attributed to geopolitical tensions affecting alternative energy supplies and natural disasters that have disrupted renewable energy production. While coal was previously considered obsolete, it has regained relevance as a stable energy source in certain contexts.

The economic impact is particularly notable in Colombia, where the decline of the coal industry has significantly reduced state revenues. According to Fenalcarbón, sector contributions could drop to less than 3.5 trillion pesos in 2026, down from annual figures exceeding 10 trillion pesos. This downturn has also led to substantial job losses, with more than 25,000 direct and 100,000 indirect jobs lost within the coal production chain.