UPDATE: The Australian Liberal-National Party faces mounting pressure to reconsider its stance on coal energy as global reliance on coal remains robust. As the world shifts toward energy security, particularly in Asia, the need for reliable electricity sources is more urgent than ever.
New reports highlight that Asia produces over 80% of the world’s thermal coal, with countries like China, India, and Indonesia leading the charge. These countries depend heavily on coal for electricity, with Mongolia, India, and Indonesia sourcing over 60% of their electricity from coal-fired plants. As other regions grapple with energy transitions, Asia’s commitment to coal continues to fuel its economic growth.
In the United States, a dramatic shift is underway as the Trump administration reverses previous coal regulations, aiming to stabilize coal-fired plants while addressing rising electricity demands from new technologies. With U.S. electricity demand expected to grow over 2% annually, thermal coal is poised to play a crucial role in meeting this need.
Meanwhile, Europe is witnessing a decline in coal’s prominence, with wind and solar energy now accounting for nearly 35% of the region’s electricity production. However, recent blackouts in Spain and Portugal have sparked concerns about the reliability of renewable sources. German Chancellor Friedrich Merz has called for a reassessment of coal shutdowns, a sentiment echoed by other European leaders highlighting the risks of rigid green policies.
In Australia, the Federal government aims to increase wind and solar energy to 75% by 2030. However, critics argue that the over-reliance on renewables could jeopardize energy security. Prominent voices, including former Nigerian Vice President Yemi Osinbajo, assert that no nation has industrialized solely on renewable energy.
As Australia faces challenges in its energy policy, the Liberals must confront the reality of coal’s role in electricity production. With nearly 60% of electricity in Victoria and NSW sourced from coal, the party’s ambivalence could lead to significant energy shortages as older coal plants retire.
What happens next? The Liberals are urged to prioritize coal by initiating studies for new coal-fired plants in both Victoria and NSW, aiming for operational readiness by the early 2030s. This strategy could help secure the energy supply and restore faith in the party’s energy policy ahead of the critical elections in Victoria in November 2026.
Political courage is essential as the Liberals navigate these pressing energy challenges. A coherent policy embracing coal could not only revitalize the party’s fortunes but also set the stage for a potential Coalition victory in the upcoming 2028 Federal elections.
The stakes are high, and the global energy landscape is evolving rapidly. As Australia and the world grapple with energy demands, the Liberals must act decisively to ensure energy security and economic stability for the future.
