The Coal Reality That Western Policy Ignores 

Lars Schernikau Visiting Fellow, NCEA Portia Roberts Deputy Executive Director, NCEA

July 7, 2026

The Issue 

One outcome from the disruption in oil and gas markets caused by the war against Iran has been a renewed appreciation for the foundational importance of coal in meeting global energy demand. As Asia was forced to reduce its reliance on liquid natural gas (LNG) following the closure of the Strait of Hormuz, thermal coal markets responded. Bangladesh, Japan, the Philippines, South Korea, Taiwan, Vietnam, and others—all capable of shifting from LNG to coal for reliable power generation— recorded an increase in coal imports.¹ Europe, too, increased coal use to bolster energy security.² …