Iran War Spikes Fossil Fuel Prices, Drives Clean Energy Adoption
The Iran war has led to a surge in clean energy development as countries seek to reduce their reliance on fossil fuels. Over 30 governments have implemented policies to transition away from fossil fuels and improve energy efficiency, but this may not be enough to combat climate change.
According to the International Energy Agency, 33 governments have adopted measures such as supporting electric vehicle adoption, promoting renewable energy, replacing gas boilers with electric heat pumps, and retrofitting homes and businesses to use less energy. However, despite these efforts, global emissions of greenhouse gases increased by 0.2% in the first half of 2026 compared to the same period last year.
Experts say that while the war is driving a green transition, it will take time for new policies to show results. 'Governments are currently doing a dance between acknowledging the importance of clean power while continuing to support fossil fuel expansion,' said Pauline Heinrichs, a war studies lecturer at King's College London.
Countries that invested in clean energy after past energy crises saved an estimated $36 billion in avoided fossil fuel imports in the first five months of the conflict. The European Union, China, and India paid the most for higher-priced oil imports due to the war.