Asia's Shift Back to Coal Amid Energy Crisis Triggered by Iran Conflict

The ongoing U.S.-Israel war on Iran has led to significant energy shortages across Asia, prompting several nations to increase their reliance on coal, the dirtiest fossil fuel. This shift is primarily a response to the disruption of liquefied natural gas (LNG) supplies, which have been severely impacted by the effective closure of the Strait of Hormuz, a critical passage for global LNG shipments. Approximately 30 billion cubic meters of LNG have been removed from global supply chains, with over 80% of this deficit affecting the Indo-Pacific region.

Asia Reverts to Coal as Iran War Severs Global LNG SuppliesWIONThe Guardian

In response to the energy crisis, countries from Bangladesh to South Korea are implementing measures to ramp up coal production. South Korea has postponed the closure of coal-fired power plants and lifted restrictions on coal-based electricity generation. Similarly, Thailand has increased output at its largest coal-fired plant, while the Philippines has declared a “national energy emergency” and plans to boost operations at its coal facilities. In South Asia, India, which relies on coal for nearly 75% of its electricity, has directed its coal plants to operate at maximum capacity, and Bangladesh has also increased coal usage and imports.

The GuardianWIONAsia Reverts to Coal as Iran War Severs Global LNG Supplies

Experts warn that the current reliance on coal could have long-term environmental consequences. Pauline Heinrichs, a climate and energy expert at King’s College London, emphasized that the crisis should serve as a wake-up call for governments to invest in renewable energy sources, which can provide a more stable and sustainable energy supply. She stated, “We need to learn that this is the moment to break that cycle of responding to short-term fossil fuel induced shocks with investments in fossil fuels.” Dinita Setyawati, a senior energy analyst at Ember, echoed this sentiment, arguing that homegrown renewables are essential for enhancing energy security and resilience.

The Guardian

The energy crisis has led to significant societal changes in affected countries. For instance, Bangladesh has closed universities early and increased planned blackouts, while Pakistan has shifted schools to remote online teaching. In Vietnam, the government is encouraging remote work, and both the Philippines and Sri Lanka have introduced four-day workweeks for many government employees to conserve energy.

Asia Reverts to Coal as Iran War Severs Global LNG Supplies

While many countries are increasing coal usage, there are also efforts to ramp up renewable energy sources. India, for example, is expediting clearances for wind power plants and battery energy storage systems. However, the overall trend remains a return to coal, raising concerns among climate experts about the long-term implications of this shift.

The Guardian

• “The global market has flipped within four weeks from quite a healthy supply surplus … into a very severe deficit – and that’s going to not just lead to price spikes, but real fuel shortages.” — Henning Gloystein, Managing Director of Energy and Resources at Eurasia Group

The Guardian

• “It’s not sustainable to rely on coal,” — Dinita Setyawati, Senior Energy Analyst at Ember

The Guardian

• “The impact of coal on climate and health outcomes is devastating and disastrous – and we’ve proven that this is the case for many decades.” — Pauline Heinrichs, Climate and Energy Expert at King’s College London

The Guardian

As the situation evolves, it remains to be seen how Asian governments will balance immediate energy needs with long-term sustainability goals.

The Guardian