Energy demand boom keeps Asia tethered to coal - The Japan Times
Published December 10, 2025
Energy Demand Surge Continues to Anchor Asia to Coal
As the global energy landscape evolves, Asia finds itself in a complex predicament. The region is experiencing a significant surge in energy demand, which is leading many countries to maintain a reliance on coal, despite the ongoing transition toward renewable energy sources. This reliance on fossil fuels raises concerns about environmental impacts and sustainability, as well as the region's ability to meet its climate targets.
The International Energy Agency (IEA) has projected that Asia will account for nearly 60% of the world's energy demand growth over the next decade. This increase is primarily driven by rapid economic growth, urbanization, and a rising population, particularly in countries like China and India. As these nations strive to power their economies and improve living standards, coal remains a primary source of energy due to its affordability and abundance.
China, the world's largest consumer of coal, is a central player in this energy dynamic. The country’s coal consumption is expected to rise, even as it invests heavily in renewable energy technologies. In 2022, China’s coal consumption surged by 5.5%, reaching 4.5 billion tons, as the country grappled with energy shortages and a rebound in industrial activity following the COVID-19 pandemic. The government has reaffirmed its commitment to coal as a key component of its energy strategy, despite pledges to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.
India is also experiencing a similar trend. The nation’s energy demand is projected to grow significantly, driven by its expanding economy and population. The Indian government has set ambitious targets for renewable energy, aiming to reach 500 gigawatts of non-fossil fuel capacity by 2030. However, coal remains a cornerstone of India’s energy mix, accounting for about 70% of the country’s electricity generation. In 2022, India’s coal production reached a record high of over 800 million tons, reflecting the ongoing reliance on this fossil fuel to meet energy needs.
Other countries in Asia are also grappling with similar challenges. Indonesia, for instance, is one of the largest coal exporters globally and continues to prioritize coal in its energy policy. The government has set a target to increase coal production to 600 million tons by 2030, despite international pressure to transition to cleaner energy sources. The Philippines, too, is expanding its coal capacity, with several new coal-fired power plants under construction, as it seeks to address energy security concerns amidst rising demand.
While the push for renewable energy is gaining momentum across the region, the transition is often hindered by economic realities and infrastructure challenges. Many Asian countries face significant barriers to scaling up renewable energy, including limited access to financing, inadequate grid infrastructure, and regulatory hurdles. These factors contribute to a continued reliance on coal as a primary energy source.
The environmental implications of this continued dependence on coal are profound. Burning coal releases significant amounts of carbon dioxide and other pollutants, contributing to climate change and air quality issues. According to the IEA, coal-fired power generation is responsible for approximately 40% of global CO2 emissions. As Asian countries ramp up coal production and consumption, they risk undermining global efforts to combat climate change.
Renewable energy advocates argue that the region must accelerate its transition to cleaner energy sources to mitigate these risks. Solar and wind energy, in particular, have seen substantial growth in recent years, with countries like China and India leading the charge in renewable capacity installations. However, the pace of this transition is often overshadowed by the ongoing investments in coal infrastructure.
Governments in Asia are under increasing pressure from both domestic and international stakeholders to address their coal dependence. Environmental groups and climate activists are calling for stronger policies to phase out coal and promote renewable energy. The global community is also urging Asian nations to commit to more ambitious climate goals, particularly in light of the Paris Agreement and subsequent climate summits.
In response to these pressures, some countries are beginning to take steps toward reducing their coal reliance. For instance, China has announced plans to limit the construction of new coal-fired power plants and increase investments in renewable energy. India is also exploring options for transitioning to cleaner energy sources, including expanding its solar and wind capacity.
Despite these efforts, the path to a sustainable energy future in Asia remains fraught with challenges. The region's energy demand is expected to continue rising, and the reliance on coal is likely to persist in the near term. The IEA estimates that coal will still account for over 40% of the global energy mix by 2040, with Asia playing a significant role in this trajectory.
As the energy landscape continues to evolve, the balance between economic growth, energy security, and environmental sustainability will be critical for Asian countries. Policymakers must navigate these competing interests while striving to meet both energy demands and climate commitments.
In conclusion, the energy demand boom in Asia is keeping many countries tethered to coal, despite the increasing urgency to transition to renewable energy sources. As the region grapples with the complexities of economic growth and environmental sustainability, the future of energy in Asia will depend on the ability to balance these critical factors. The ongoing reliance on coal presents significant challenges, but it also offers an opportunity for innovation and investment in clean energy technologies that could reshape the region's energy landscape in the years to come.
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