Iran War Spurs Clean Energy Development Amid Fossil Fuel Price Volatility
The ongoing war in Iran has led to a surge in clean energy development as countries seek to reduce their dependence on fossil fuels and lower energy costs. In response to the conflict, over 30 governments have implemented policies aimed at transitioning away from fossil fuels and improving energy efficiency.
According to the International Energy Agency, these efforts include supporting electric vehicle adoption, promoting renewable energy, replacing gas boilers with electric heat pumps, and retrofitting homes and businesses to use less energy. The Netherlands, Spain, and the UK are among the countries that have implemented all of these measures.
However, experts warn that while the war may be driving clean energy development, it is not yet enough to help address climate change. Global greenhouse gas emissions increased by 0.2% in the first half of 2026 compared to the same period last year, despite a decline in power sector emissions.
Some countries are also cutting fuel taxes, which provides immediate relief to consumers but disincentivizes switching to electric vehicles. The war itself will likely increase emissions, with disruptions to oil and gas markets potentially leading to an increased reliance on coal for electricity.