Asia's coal comeback threatens climate goals amid Iran war energy crisis

Asian nations are increasing their reliance on coal-fired power after the Iran war disrupted oil and gas supplies. The shift comes as countries like India, South Korea, and Indonesia face energy shortages from surging demand and import challenges. But the move risks worsening pollution, delaying climate goals, and locking in long-term dependence on fossil fuels.

The conflict in Iran, which began in late 2024, has severely disrupted fuel shipments passing through the Strait of Hormuz. With oil and gas imports becoming unreliable, Asian governments have turned to coal as a quick and widely available alternative. Liquefied Natural Gas (LNG), often used as a bridge fuel, remains a source of emissions, while coal—though plentiful—threatens to undo progress in renewable energy.

India's coal use has surged, with the fuel now accounting for 78% of electricity generation during peak summer 2025, up from 72% in 2023. The rise stems from record heatwaves and reduced access to imported oil and gas. This heavy reliance on coal has pushed back India's target of achieving 50% non-fossil energy capacity by 2030.

Elsewhere, Indonesia, the world's top coal exporter, is prioritising domestic consumption over exports. This policy could tighten regional supplies and drive up global coal prices. Meanwhile, South Korea, Thailand, the Philippines, and Vietnam are also ramping up coal power to fill gaps left by LNG shortages. Experts warn that while coal offers a short-term solution, it leaves the region vulnerable to future energy crises and environmental harm.

The return to coal may ease immediate energy shortages, but it carries long-term risks. Increased smog, higher emissions, and delayed renewable energy projects could result from prolonged dependence. Without a shift in strategy, Asia's energy security and climate commitments may face growing pressure in the years ahead.