As nations try to rebound following the seismic shocks caused by the Covid-19 pandemic, Asia has largely relied on coal to fire-up its economies. Asia’s energy transition has been lethargic and continues to sit in tension with ballooning growth in demand driven by increasing prosperity and population growth which is producing almost 250,000 new consumers every year. Southeast Asia now accounts for more than half of global energy demand. All the major economies in the region continue to rely on coal and as a result, most of the growth in emissions seen over the past two decades has come from Asia. China alone accounts for close to 30 per cent of emissions.
China is aiming to phase down coal use from 2026 as part of its efforts to slash greenhouse gas emissions, meaning that its consumption will reach a peak in 2025. Chinese President Xi Jinping also has pledged to bring China’s emissions to a peak before 2030 and make the country “carbon neutral” by 2060. India aims to have around 60 per cent of its installed electricity generation capacity from clean sources by 2030, mainly by increasing the use of renewables. In the short to medium term, gas in this region will become more prevalent as a steppingstone, an intermediate technology prior to the full-scale adoption of renewables.