The Diplomat: Asia and the Fall of Coal

Asia, accounting for about 60 percent of the world’s population, is abruptly shifting away from coal toward renewable energies, especially solar. The most populated nations could lead the continent. “From 2002 to 2012, the global coal trade doubled, with the four largest Asian economies – Japan, South Korea, China, and India – accounting for the majority of imports,” reports Nithin Coca for the Diplomat. In 2015, China’s coal imports dropped 30 percent and more the next year. Global sales from coal exports in 2016 dropped by more than 40 percent from 2012. Despite rising cost advantages of renewables, Japan is the biggest investor in coal, funding projects in Indonesia, Vietnam and other emerging economies. Infrastructure investment experts warn against reliance on coal. “If Asia’s developing countries can grow using less coal and more clean energy, it gives hope not only to the global climate, but could herald a new era of development in the region at the heart of the global economy,” explains Nithin Coca. “If Asia does shift away from coal, with Southeast Asia following India and China, it would mean the center of the global economy no longer depends on fossil fuels for growth. The geopolitical ramifications will be enormous.” He urges investors to prepare. – YaleGlobal