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The "carbon peak, carbon neutral" goal and the rapid development of new energy sources such as photovoltaic and hydrogen energy have accelerated the decline of the traditional coal industry. Therefore, the coal industry urgently needs to seize the opportunity for coal transformation and achieve high-quality development to improve its competitiveness. This study used a combination of literature analysis and case supplementation to identify 12 influencing factors of coal industry transformation. The DEMATEL method was used to classify the 12 influencing factors into four groups: strong cause, weak cause, strong outcome, and weak outcome. Then, the ISM method was used to construct a multi-level recursive structure of the factors influencing the transformation of the coal industry. The results show that the influencing factors of coal industry transformation can be divided into a three-layer hierarchical structure. Among them, policy traction is the most critical fundamental influence, technological change has the highest importance in the indirect influence layer, while safety production, related industries and support, and capital funding are the most effective direct influence. It should be the focus of attention. [ABSTRACT FROM AUTHOR]