20210907 coal-fired power plant in China

China is the world's largest producer and importer of thermal coal, and also its biggest user. © AP

China and India send coal prices soaring amid green-energy push

Squeeze driven by short-term supply disruption and lack of long-term investment

TOKYO -- The price of thermal coal used to generate electricity is nearing a record high as surging demand in China and India collides with a reluctance to invest in new capacity in a world heading for decarbonization.

While coal is sometimes called the least-loved commodity because of carbon emissions, Asia's two largest economies are currently still hooked on the fuel, meaning the rising costs could feed through to higher energy bills and impact economic activity if they persist.

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