Asia Increases Reliance on Coal to Address Energy Shortfalls from Iran Conflict
Governments across Asia are significantly expanding their use of coal, the most environmentally damaging fossil fuel, as they scramble to cover substantial energy deficits triggered by the ongoing US-Israel war on Iran. This strategic shift has prompted urgent warnings from climate specialists who emphasize coal's catastrophic environmental consequences and argue that the current energy crisis should serve as a critical catalyst for governments to accelerate investments in renewable energy sources, which provide more stable supplies less vulnerable to price volatility.
Regional Responses to Energy Supply Disruptions
From Bangladesh to South Korea, nations are implementing measures to compensate for reduced imported energy, much of which traditionally originates from the Middle East. South Korea has announced it will postpone the scheduled shutdown of coal-fired power plants and has eliminated caps on electricity generated from coal. Meanwhile, Thailand has increased output at its largest coal-fired facility.
The Philippines, which has declared a "national energy emergency" directly resulting from the war, plans to boost operations at its coal-burning power plants. In South Asia, India—where coal accounts for nearly 75% of power generation—has instructed its coal plants to operate at maximum capacity and avoid planned maintenance outages. Bangladesh similarly increased both coal-fired power generation and coal imports during March.
Liquefied Natural Gas Shortages Exacerbate Crisis
Governments are urgently working to overcome shortages, particularly in liquefied natural gas (LNG) supplies. LNG has been promoted as a transitional fuel in the shift from coal to cleaner energy, although research indicates exported gas can emit more greenhouse gases than coal. Many Asian economies depend on LNG for electricity generation and industrial applications like fertilizer manufacturing, with regional demand projected to double over the next quarter-century.
However, supplies have been severely disrupted by the effective closure of the Strait of Hormuz, through which approximately one-fifth of global LNG shipments pass. Additionally, attacks on a major LNG export facility in Qatar will worsen shortages and have multi-year impacts on the industry, according to experts.
Henning Gloystein, managing director of energy and resources at Eurasia Group, reported that almost 30 billion cubic meters of LNG has been removed from global supply chains, with over 80% of that shortage concentrated in the Indo-Pacific region. "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," Gloystein stated.
Climate Experts Urge Renewable Energy Investment
Pauline Heinrichs, a climate and energy expert at King's College London, emphasized that this crisis should represent a pivotal moment for governments. "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. Not only does it worsen climate risks, but the same goes for pollution and toxicity," she explained.
Heinrichs stressed that the current energy crisis highlights the importance of renewable energy "not just as a climate priority, but ultimately for energy security more broadly in Asia." She cautioned against allowing increased coal reliance to become entrenched in long-term energy systems, stating: "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, because they're never short-term—they're always long-term infrastructure investments of sorts."
Dinita Setyawati, senior energy analyst for Asia at the think tank Ember based in Jakarta, echoed this sentiment: "It's not sustainable to rely on coal. Homegrown renewables are definitely the way to go to improve energy security and resilience."
Energy Conservation Measures Across the Region
Across Asia, countries are exploring various methods to reduce energy consumption. The Philippines and Sri Lanka have implemented four-day work weeks for many government employees, while Vietnam encourages remote work. Bangladesh closed universities early by moving forward Eid al-Fitr holidays and has instituted more scheduled blackouts. Pakistan has transitioned schools to online remote teaching.
Gloystein warned that recovering LNG supplies will require years rather than months. "This isn't a short-term thing—people hope that next week there will be some form of a climb down or ceasefire and then we'll go back to normal. This is going to stay with us for a while because the damage that has been done, it's going to take years to repair," he concluded.
