Vietnam and other Asian countries are on a coal spree! Given the dynamics of energy use in the rapidly developing industrial sector there, it is no surprise that these nations have backpedaled on big promises made at international climate conferences to reduce emissions of carbon dioxide from fossil fuels.
So, the heavy lifting to meet power demand must now come from coal. The country is urging coal miners to maximize production before demand reaches peak in the summer months. The country’s prime minister has asked for an increase in coal exploration as well, signaling a sustained interest in medium- to long-term reliance on coal.
Similar Patterns Across Asia
Across Asia, a similar phenomenon is unfolding. The regional coal resurgence can be attributed to the rapid economic growth in these countries. China, the world’s largest coal consumer, witnessed a rise in consumption in 2024. Earlier this year, reports showed the construction of dozens of new coal plants in China. In 2023, the country accounted for 95 percent of the construction of the world’s new coal power plants. There are a total of 1,142 operating coal-fired plants in China, which is five times more than in the United States.Like Australia, the United States has been a top source of coal imports for these Asian countries. S&P Global says: “U.S. metallurgical coal exports have seen growth fueled by Asian demand over the past few years. The potential for seaborne volumes to grow hinge on expansions in blast furnace steelmaking and met coke production in India, China, and Southeast Asia.” New mines such as Arch Resource’s Leer South and the AMCI, POSCO, and Itochu-led Allegheny Met’s Longview mine will play a role in meeting this demand from Asia.
Ironically, U.S. coal miners can meet Asian needs while their government rejects them as a fuel source for cheap electricity!
The advancement of recent emission-reduction targets for U.S. industry, as well as restrictions on the export capacity of natural gas by the Biden administration, is quite astonishing in light of the ongoing expansions in fossil fuel capacity by various Asian nations.
The quality of life for millions of Americans could very well decline in return for zero environmental benefits as that of Asians improves.