Asian Nations Increase Coal Reliance Amidst Oil and Gas Supply Disruptions from Iran Conflict

Kathmandu. Following disruptions to oil and gas supplies due to the conflict in Iran, Asian countries have temporarily increased their reliance on coal. The region is heavily dependent on imported fuel, a significant portion of which passes through the Strait of Hormuz, where about one-fifth of the world's oil and natural gas trade occurs.

Liquefied natural gas is generally used in the transition from oil and coal to cleaner energy. It pollutes less than coal but still emits harmful gases into the atmosphere. As gas supplies decreased following the Iran conflict, India, South Korea, Indonesia, Thailand, the Philippines, and Vietnam have increased their dependence on coal.

India is using more coal to meet peak summer demand. South Korea has raised the limit on electricity generation from coal. Indonesia has prioritized its domestic coal, which increases the likelihood of reducing regional supply. Vietnam is preparing to import coal from other countries following supply instability.

Increased use of coal raises the risk of smog, air pollution, and heart and lung-related diseases. It also has the potential to delay the transition towards renewable energy sources in the long term. According to experts, the use of coal is a temporary solution now; the long-term solution is renewable energy.

Coal prices have increased after the conflict, which will put pressure on electricity prices in Southeast Asian countries. According to health organizations, smoke from coal increases the risk of lung, heart, stroke, and chronic respiratory diseases. Millions of people in India are breathing unsafe air. Vietnam aims to reduce coal usage by promoting electric vehicles.