Asia increases coal consumption amid reduced global LNG availability due to the conflict in Iran.

Asian Countries Increase Coal Reliance Amid Energy Disruptions

As the ongoing conflict in Iran disrupts oil and gas supplies, Asian nations are increasingly reverting to coal to meet their energy needs. This shift raises critical questions about public health, climate change, and future energy policies.

### Energy Security and the Shift to Coal

Asian countries have long depended on imported fuels, much of which passes through the Strait of Hormuz—an essential maritime route for approximately 20% of the world’s oil and natural gas shipments. In response to recent supply chain disruptions, nations like India, South Korea, Indonesia, Thailand, the Philippines, and Vietnam are ramping up coal-fired power generation. This resurgence poses challenges not only for air quality but also in the transition towards renewable energy sources.

Coal, often viewed as a “quick fix,” is coming back into focus due to its abundant availability in the region. India, for instance, is turning to coal to meet heightened summer electricity demands, while South Korea has lifted caps on coal-generated electrical output. Experts caution that this increased reliance carries serious implications for air quality and climate change.

### Short-Term Solutions vs. Long-Term Sustainability

Experts in energy transition highlight that while coal serves as a temporary solution, it is not sustainable in the long run. Julia Skorupska of the Powering Past Coal Alliance emphasizes that this situation is a wake-up call for Asia, highlighting the need for diversification in energy sources. Sandeep Pai, an energy expert at Duke University, explains that coal remains a fallback option due to its wide availability but warns that it may lead to future vulnerabilities.

China, the world’s largest coal consumer, has bolstered its coal power generation capacity since 2021, viewing it as a crucial measure to enhance energy security. Meanwhile, India faces the dual challenge of soaring peak electricity demand and gas supply shortages, prompting a reevaluation of its energy strategy.

### The Coalition Struggles with Climate Goals

Countries like Indonesia, the leading coal supplier globally, are prioritizing domestic coal needs over exports to ensure energy supply stability. This shift could further strain regional energy markets, potentially raising global coal prices. Vietnam, already grappling with supply chain challenges, is exploring alternative coal imports from the U.S. and Laos in response to uncertainty from Indonesia.

While some coal advocates, such as Michelle Manook of FutureCoal, argue that this reliance on coal must be strategically managed, environmental experts caution that such dependencies could backfire in future energy crises. Pauline Heinrichs, from King’s College London, highlights how countries could inadvertently exacerbate their energy insecurities in attempting to counteract current shortages.

### Health Implications of Increased Coal Use

Reverting to coal presents significant public health risks. The combustion of coal releases fine particulate matter, which is linked to numerous health complications such as heart disease, lung cancer, and chronic respiratory illnesses, according to the World Health Organization (WHO). Air quality is a growing concern across many Asian cities, especially during agricultural burning seasons. Reports show that nearly all Indians breathe air with hazardous levels of pollution, prompting the country to relax regulations allowing more coal burning to address gas shortages.

Vietnam faces a similarly dire air quality crisis, as it promotes the adoption of electric bikes and sets targets to reduce coal use. The apprehension among citizens is palpable; local shop owner Lan Nguyen has expressed concern over the health implications of coal use, particularly for her asthmatic son.

### Future Energy Policies and Economic Impact

The recent surge in coal usage has immediate economic implications, as coal prices are subject to global market fluctuations. For instance, the price of Newcastle coal from Australia has risen by 13% since the onset of the Iran conflict. Economically vulnerable Southeast Asian countries—including Thailand, Vietnam, and the Philippines—could experience these costs acutely, as coal becomes more expensive and less reliable.

While countries like South Korea are committed to phasing out coal by 2040, the current policies allowing increased coal use raise concerns about global climate targets and the country’s long-term sustainability efforts. Moreover, Indonesia is finding it increasingly costly to generate electricity from coal due to the aging of its power plants and rising operational expenses.

### Conclusion

The current energy transition in Asia, marked by a return to coal dependency, presents complex challenges spanning public health, environmental sustainability, and economic stability. While short-term energy security may be achieved, the broader implications indicate a substantial risk of undermining long-term commitments to cleaner energy sources. As Asian countries navigate these turbulent waters, a collective approach fostering renewable energy investments and diversified energy portfolios may be essential to ensure resilience against future disruptions.

Source reference: Original Reporting

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