Energy crisis fueled by Iran war makes economic logic of renewables impossible to ignore

The energy crisis fueled by the Iran war has made the economic logic of renewables impossible to ignore, according to UN Climate Change Executive Secretary Simon Stiell. Latest developments are supercharging the global renewables boom, he added.

The war between the US and Israel against Iran caused disruptions in the production and transportation of crude oil and liquefied natural gas (LNG) in the Middle East, so their prices surged. The conflict has led to the closure of the Strait of Hormuz, the corridor for 20% of the world’s crude oil and 20% of liquefied natural gas (LNG).

At the same time, sales of renewable energy equipment and electric vehicles have increased.

Speaking at the International Energy Agency’s (IEA) headquarters in Paris, Simon Stiell noted that the fossil fuel cost crisis has its foot on the throat of the global economy.

But, from this tragedy, an immense irony is unfolding, he added.

Renewables offer safer, cheaper, cleaner energy

“Those who’ve fought to keep the world hooked on fossil fuels are inadvertently supercharging the global renewables boom. And this latest fossil fuel cost crisis has made the economic logic of renewables impossible to ignore,” he stressed.

Renewables offer safer, cheaper, cleaner energy that can’t be held captive by narrow shipping straits or global conflicts, he asserted.

Countries like Spain and Pakistan, rich in renewables, have been protected from some of the worst impacts of this crisis, in his view.

France is doubling funding for electrification

That’s why so many governments are pushing renewables plans into overdrive: to restore national security, economic stability, competitiveness, policy autonomy and basic sovereignty, Stiell explained.

France is doubling funding for electrification, while China, India, Indonesia, South Korea, Germany, the UK, and more have been clear that pushing forward with the renewables transition is a cornerstone of energy security.

“This is real momentum. We must harness it to accelerate a truly global shift,” he underscored.