Coal-fired plants in India Photograph:( Reuters )
In the report titled: "Do Not Revive Coal", the think tank Carbon Tracker said all new coal projects should be cancelled which is likely to witness value destruction for investors and taxpayers.
According to a think-tank Carbon Tracker, five Asian countries namely China, India, Vietnam, Indonesia and Japan are responsible for 80 per cent of the world’s planned new coal plants and 75 per cent of existing coal capacity.
The think-tank added that 92 per cent of planned coal units will be "uneconomic" in these countries and up to "$150 billion could be wasted."
The Carbon Tracker recommended that governments should use post-COVID stimulus as an opportunity to lay the foundations for a sustainable energy system while adding that in Asia, governments should resist the urge to switch from coal to liquefied natural gas (LNG).
In the report titled: "Do Not Revive Coal", it said that coal is increasingly "unviable" both financially and environmentally with new renewables beating 77 per cent of operating coal.
The report said that renewables will rise 98 per cent by 2026 and 99 per cent by 2030 as market designs will enable a level playing field allowing continued growth of renewables at least cost.
It said that all new coal projects should be cancelled which is likely to witness value destruction for investors and taxpayers.
In a similar report about the falling coal demand, the International Energy Agency (IEA) said worldwide coal demand dropped 11 per cent year-on-year in the first quarter of 2020 owing to mild weather, competitive gas prices and COVID-19 related lockdowns in China which further resulted in coal demand declining 7.7 per cent year-on-year in the second quarter as restrictions spread to other economies.
Coal-fired power generation dropped by 3 per cent in 2019, the IEA said, however, it added that in China and other parts of Asia coal was the largest source of power generation.
In the Coal 2019 report, the IEA had said "coal remains a major fuel in global energy systems, accounting for almost 40 per cent of electricity generation and more than 40 per cent of energy-related carbon dioxide emissions."
The coal-driven power generation grew 2 per cent in 2018 to reach an all-time high with China, India and other Asian economies leading the expansion, however, it fell in Europe and North America, the report said.
(With inputs from Agencies)