By Abbas Nazil
Carbon capture and storage (CCS) for coal-fired power plants continues to play a minimal role in reducing global coal emissions, according to a new analysis by the International Energy Agency (IEA).
The agency estimates that existing carbon capture systems at coal-based facilities worldwide can currently manage approximately 10 million metric tons of CO₂ annually, representing only 0.06 percent of total emissions associated with coal use.
These figures highlight the scale of the challenge facing efforts to transition to a low-carbon energy system, especially as coal demand remains resilient and shows no immediate signs of decline.
The IEA reports that coal-related activities produced roughly 135 million tons of CO₂-equivalent emissions last year, with global coal demand projected to rise by 0.5 percent in 2025, reaching a record 8.85 billion tons.
North America continues to dominate operational coal CCS capacity, accounting for more than half of the global total.
Three of the four largest projects are located in the region, including the Great Plains synfuels facility, Petra Nova in Texas, which restarted operations in 2023, and Canada’s Boundary Dam power station.
While North America leads in current installations, China has emerged as the most active market for new coal CCS projects.
Between 2024 and 2025, China expanded its installed capacity by nearly 50 percent, driven in part by the Huaneng Longdong Energy Base, launched in September 2025, which can capture 1.5 million tons of CO₂ annually, making it the largest CCS installation attached to a coal-fired power plant.
China also accounts for the majority of commercial-scale coal capture projects in operation, with a combined target capacity exceeding 2.3 million tons per year.
Despite these developments, most planned coal CCS projects globally remain in early stages of development.
The IEA warns that without rapid acceleration in carbon capture, utilisation, and storage (CCUS) deployment, coal will struggle to maintain any viable role in a low-carbon energy system.
Alternative solutions, such as hydrogen-based steelmaking, are expected to remain constrained by high costs and limited material availability, which sustains ongoing demand for coking coal in heavy industries.
The report remarks that although renewables, nuclear, and liquefied natural gas are reshaping the global power generation landscape, carbon capture will likely only contribute marginally to reducing coal’s overall emissions footprint in the near term.
