The use of a dirty energy source in the world's third-largest market is concerning for the future of the clean energy transition.
What's happening?
India and Southeast Asia are increasing their coal demand as China continues to rely on the most polluting form of power, the Financial Mail reported via Miningmx.
Coal demand was up 1.1% overall in 2024. In China, that figure rose 1.2% to a record high — the country uses nearly 40% more coal than the rest of the world combined. Developing Asia now uses almost 80% of global coal after using under 40% in 2000, the Mail noted, citing the International Energy Agency. India's demand grew by 5.5%.
In Vietnam, for example, coal imports climbed 31%, and its burning capacity is expected to increase another 15% after the end of a manufacturing industry boom, BMO Capital Markets told the Mail.
Why is this important?
Coal in the United States accounts for 80% of power plants' carbon pollution, even though it produces just 44% of electricity, according to Enova Energy Group. The rising reliance on coal on the other side of the globe is worrisome partly because Earth's supply will last only another 100 years, which is also the timeline for obsolescence of the other two so-called fossil fuels: oil and natural gas.
"Burning coal leads to soot, smog, acid rain, global warming, and carbon emissions," Enova stated. "It also generates a great deal of waste, including sludge, toxic chemicals, and heat. Coal pollutes during every stage of the energy production process, from mining and transportation to storage and burning."
Bank of America told the Mail that despite divestment by Europe, Japan, and the U.S., coal plants will be a staple in emerging markets for years. "For better or worse, we believe thermal coal will likely continue to play a key role in energising the world economy," it stated.
What's being done about rising coal demand?
There is some good news. Coal makes up a shrinking portion of the world's electricity sources, and last year it reached a record low since 1974 of 35%, though it's still the "largest source of power generation," per the International Energy Agency.
Coal demand among advanced economies is down 50% from 2007, and while worldwide coal-based power expanded by 90 terawatt-hours in 2004, renewable wind, solar, and nuclear energy ballooned by 770 TWh.
Countries can continue this trend — and move everyone further along the path to a cleaner, cooler future — by shutting down coal plants. The United Kingdom, home to the world's first coal factory in 1882, cut its coal power capacity to zero in 2024. In the U.S., some states have repurposed defunct coal plants to support green energy, creating new jobs in the process.
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