Governments worldwide are racing to find a solution to contend with the severe energy shortages brought about by the war in Iran and the ongoing Middle East conflict. For some, this means accelerating the deployment of renewable energy, which is likely to be a longer-term solution. For others, it means relying on stockpiles of crude, while the oil trade remains limited.
And, for many, it means using any type of energy available, including coal. Several countries have reduced their reliance on coal in recent years in favour of oil, gas, and renewable energy sources. This has supported the beginnings of a global green transition, decreasing dependence on the highly polluting fossil fuel as the cost of the production of other energy sources, such as solar and wind energy, has fallen.
However, due to energy shortages and rising fuel prices, many countries could come to rely on coal to meet their energy demand once again. The U.S.-Israeli attack on Iran and the ongoing conflict in the Middle East have caused the biggest oil disruption in history, according to an analysis by consulting firm Rapidan Energy. A large proportion of the world's oil supply has been disrupted for over a month, following the closure of the Strait of Hormuz – a key trade corridor connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
The strait is used to transport around 20 percent of the world's oil when fully operational, but only a small fraction of that has passed through the waters in recent weeks. While many governments release supplies of stockpiled crude and ask consumers and businesses to cut energy use, some are also discussing restarting coal plants to meet demand as they face energy shortages. Increasing coal production is seen as a relatively cheap and fast way to tackle the shortage and high price of oil and gas.
While several countries have decreased their reliance on gas, others have used the "dirtiest fossil fuel" to meet the growing consumer demand for energy, particularly in Southeast Asia. Global coal consumption has risen by around 1.3 billion tons since 2020, to 8.8 billion tons. This has been driven by countries such as China and India, as well as through geopolitical challenges, such as the Russian invasion of Ukraine, which led to the introduction of sanctions on Russian energy and drove Europe to stop buying Russian gas.
Even with world leaders being increasingly aware of the risks associated with coal production and use, many are still turning to the fuel when shortages arise, as the renewable energy capacity of most countries remains underdeveloped. With around 20 percent of the natural gas supply unable to move through the Strait of Hormuz, several countries in Asia and Europe are expected to increase their coal use. Asia has been disproportionately affected by the shortages due to its heavy reliance on Middle Eastern countries for oil and gas.
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