Asia's coal comeback: Energy security trumps climate goals amid crisis

Asian nations are turning back to coal to secure their energy supplies. The shift follows disruptions in oil and gas shipments caused by the Ukraine crisis. Countries across the region are now boosting coal use despite concerns over pollution and climate goals.

From 2022 to 2026, major coal importers like China, India, Japan, and South Korea increased their demand significantly. China's imports rose from around 400 million tonnes in 2022 to an estimated 450 million tonnes by 2025. India's imports climbed from 240 million tonnes to about 280 million tonnes in the same period. Prices surged to a peak of $400 per tonne in 2022 before dropping to roughly $120 per tonne by 2026 due to oversupply.

The region has relied more on coal as a short-term fix while renewables remain under development. Indonesia, prioritising its own supply, has become a key supplier alongside Australia, reducing dependence on Russian coal. Meanwhile, Thailand, the Philippines, and Vietnam have expanded coal-fired power generation. South Korea even removed limits on coal-generated electricity to meet demand. Asia's heavy reliance on imported fuel, much of which passes through the Strait of Hormuz, has made coal a default backup. With about a fifth of global oil and gas trade moving through this chokepoint, disruptions have pushed nations toward coal as an emergency solution. India, facing higher summer demand, has also ramped up coal burning.

The return to coal risks worsening urban smog and delaying the shift to cleaner energy. It also threatens to increase the region's greenhouse gas emissions. Experts still view coal as a temporary measure, with renewables remaining the long-term answer to energy security.