Higher gas prices fuelled a return to coal, while global energy demand and renewable power generation continued to rise.
Image: Reuters
The United States accounted for roughly one-third of the increase in global energy-related carbon dioxide (CO₂) emissions in 2025, according to a new report by the Energy Institute, produced in partnership with Ember, Kearney and KPMG.
The report said higher natural gas prices prompted US power producers to switch back to coal, with coal consumption rising 10% during the year. The shift reversed progress toward cleaner fuels and contributed significantly to higher emissions.
Global energy-sector CO₂ emissions increased by 1.1% to 35,806 million metric tonnes in 2025. North America recorded a rise in emissions despite a decade-long trend of annual declines averaging 0.7%.
At the same time, global energy demand grew by 1.7%, with renewable energy accounting for the largest share of new supply. Renewable electricity generation rose 9.1%, driven by a 30% increase in solar power.
The report also found that Europe’s energy-related emissions increased by 0.5%, while China’s rose by 0.7%. Global electricity demand climbed 3%, outpacing supply growth, as expanding use of electric vehicles, data centres and artificial intelligence boosted power consumption.
Global oil demand increased by 1.3% to 103 million barrels per day in 2025, while oil production rose 3.5%. In China, gasoline and diesel consumption continued to decline, extending a trend seen the previous year.
The report added that natural gas demand growth was concentrated in Europe, the Middle East and North America, with Europe and India relying on imports for nearly half of their gas supply.
