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

Several Asian nations are increasing their reliance on coal as energy security concerns grow. The shift follows disruptions in oil and gas supplies, driven by geopolitical tensions and post-pandemic demand. Governments are now easing restrictions on coal-fired power to prevent shortages and stabilise grids.

The move comes despite warnings about rising emissions, worsening air pollution, and delays in the transition to renewable energy.

From 2022 to 2024, coal demand surged across Asia's largest economies. China's imports hit a record 474 million tonnes in 2023—up 61% from 2021—while India's reached 176 million tonnes, an 86% increase. Japan and South Korea imported around 190 million and 130 million tonnes respectively during the same period. The spike came as countries sought alternatives to volatile gas markets and unreliable hydropower.

South Korea recently lifted caps on coal-generated electricity, allowing plants to run at full capacity. India has also ramped up coal burning to meet soaring summer demand. Meanwhile, Indonesia is prioritising its own domestic coal reserves to secure supply.

Elsewhere, Thailand, the Philippines, and Vietnam are expanding coal-fired power plants. These nations, like others in the region, rely heavily on imported fuel, much of which travels through the Strait of Hormuz—a critical chokepoint for about a fifth of global oil and gas trade. With disruptions to LNG shipments, coal has become the default backup when renewables or gas fall short.

Experts warn that the short-term fix risks long-term consequences. Burning more coal could worsen urban smog, slow the shift to cleaner energy, and increase the region's carbon emissions. While renewables are expanding, coal remains deeply embedded in Asia's emergency energy strategies.

By early 2026, Asia's cumulative coal imports had risen by roughly 15-20% compared to pre-2022 levels, according to IEA data. Demand stabilised or slightly declined in 2025 as renewable capacity grew, but coal's role as a stopgap remains unchanged. The region's continued dependence on the fuel highlights the tension between immediate energy needs and long-term climate goals.