Carbon capture and storage remains a marginal tool in reducing emissions from coal, according to new analysis from the International Energy Agency (IEA).
The agency estimates that operating carbon capture systems at coal-based facilities worldwide can currently handle around 10 million metric tons of CO2 per year – equivalent to just 0.06% of total emissions linked to coal use.
The findings underscore the scale of the challenge facing the energy transition as coal demand shows little sign of immediate decline. The IEA reports that coal-related activity generated roughly 135 million tons of CO2-equivalent emissions last year, while global coal demand is projected to increase by 0.5% in 2025, reaching a record 8.85 billion tons.
North America continues to dominate installed coal CCS capacity, hosting more than half of the global total. Three of the four largest operational projects are located in the region, including the Great Plains synfuels facility, Petra Nova in Texas, which restarted in 2023, and Canada’s Boundary Dam power station.
China Leads New Additions as Pipeline Lags
While North America leads in operating capacity, 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%, driven in part by the launch of the Huaneng Longdong Energy Base in September 2025. With the ability to capture 1.5 million tons of CO2 annually, the project is now the largest CCS installation attached to a coal-fired power plant.
China also accounts for the majority of commercial-scale coal capture projects currently in operation, with a combined target capacity exceeding 2.3 million tons per year. However, the IEA notes that most planned coal CCS capacity globally remains in early development.
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The agency warns that without a dramatic acceleration in CCUS deployment, coal will struggle to retain any role in a low-carbon energy system.
At the same time, alternatives such as hydrogen-based steelmaking are expected to remain constrained by costs and material availability, keeping demand for coking coal resilient in heavy industry.
The report aligns with broader market analysis suggesting that while renewables, nuclear and LNG are reshaping power generation, carbon capture is likely to play only a limited role in reducing coal’s global emissions footprint in the near term.
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