Rizky Aditya PutraandAlfred Gurning

Opinion | Why it’s too early to rule out ‘sexy killer’ coal in Asean’s energy mix

Phasing out coal now is impractical for Asean due to growing energy demand and abundant reserves; and coal may play a role in post-coronavirus recovery

Coal accounts for 40 per cent of CO2 emissions, but clean coal technology (CCT) is available to facilitate the transition towards lower emissions

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A coal stockpile is seen at Tarahan coal port in Lampung province, Indonesia. Southeast Asia has plentiful coal supply, and Asean is actively promoting the utilisation of clean coal technology. Photo: Reuters

Rizky Aditya PutraandAlfred Gurning

Published: 12:30pm, 2 Sep 2020Updated: 10:42am, 3 Sep 2020

Long before the Covid-19 pandemic, climate movements had appeared globally and impacted the coal industry. For example, in 2019, a YouTube video titled “Sexy Killers” became a trending topic in Indonesia and damaged the image of coal in the country. The perception of coal as “dirty energy” and moves to phase it out have put the industry in a tough spot.

However, completely phasing out coal would be impractical in the short and medium-term for ensuring energy security in the Association of Southeast Asian Nations (Asean), due to growing energy demand. This is expected to increase by an average of 3.4 per cent per year to 1,450 million tons of oil equivalent in 2040. On the other hand, Asean coal reserves are abundant, forecast to be about 12–14 billion metric tons in 2035. Therefore, it is sensible to utilise the region’s plentiful coal supply to meet the demand for energy to ensure energy security.

Although coal demand has declined globally, it is projected to increase in Asean, from 139 Mtoe in 2017 to 329 Mtoe in 2040. Meanwhile, a fast post-pandemic recovery could result in a significant increase in energy demand. In Asean countries, coal accounted for around 89GW of installed power capacity in 2019 and this is expected to almost double by 2040.

However, if compared to the current coal installed capacity in G7 and BRICS countries, Asean’s 2040 projected capacity is relatively low, as it is only equal to 43 per cent and 13 per cent respectively. At the same time, the use of coal is a threat to environmental sustainability as it is a carbon-intensive energy source.

Graphic courtesy of the Asean Centre for Energy.

Coal, including from mining, power generation, and other uses, accounts for 40 per cent of global CO2 emissions. Additionally, the International Energy Agency (IEA) reported that CO2 emitted from coal combustion was responsible for over 0.3°C of the 1°C increase in global average annual surface temperatures above pre-industrial levels. This makes coal the single largest source of global temperature increase.

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