Asia's coal reliance spikes as energy crises force a dirty comeback

Asia's reliance on coal has surged since 2022 as countries turn to the fuel for emergency energy needs. Rising demand follows disruptions from the Russia-Ukraine conflict, post-pandemic recovery, and shortages in hydropower. Yet this shift risks worsening air pollution and climate impacts across the region.

From 2022 to 2024, major Asian importers sharply increased coal use. China's imports hit a record 474 million tonnes in 2023, up 61% from the previous year. India's imports climbed to 176 million tonnes, a 15% rise, driven by soaring summer electricity needs. Meanwhile, Japan and South Korea cut coal imports by 10-15%, switching to liquefied natural gas (LNG) where possible.

Prices spiked to $400 per tonne in early 2022 but later fell to around $120 by 2024 as supply outpaced demand. By early 2026, China's and India's imports stabilised at roughly 450 million and 250 million tonnes respectively. Japan and South Korea reduced theirs further, helped by milder weather and growth in renewable energy.

Several nations have eased restrictions on coal power to secure energy supplies. South Korea removed limits on coal-generated electricity, while Indonesia focused on using its own coal reserves. Thailand, Vietnam, and the Philippines also expanded coal-fired capacity to avoid shortages.

The region's coal dependence remains a temporary fix, leaving it vulnerable to future supply shocks. While renewables are growing, coal still dominates short-term energy strategies. This continued use will likely raise emissions and urban air pollution in the coming years.