What does the Iran war mean for clean energy transition?

Explainer What does the Iran war mean for clean energy transition? Here’s what to know about how the current crisis could shape the expansion of renewable energy As the deadly war in Iran triggers what the International Energy Agency has described as the worst oil crisis in history, climate advocates are calling for a faster shift away from fossil fuels, but the conflict may also hamper that transition. US-Israeli strikes on Iran have disrupted supply routes through the strait of Hormuz, through which 20% of global oil flows. The US, Israel and Iran have also all launched strikes on fossil fuel facilities, creating additional market shocks. Reduced reliance on oil and gas is insulating some regions from the ongoing fuel crisis. “Electricity generated from wind and solar is largely insulated from fossil fuel price volatility – once built, the fuel is free,” said Jan Rosenow, a professor of energy at Oxford University. But the war is also creating near-term challenges that could slow clean energy growth. Here’s what to know about how the current crisis could shape the expansion of renewable energy. Electric vehicles have also helped some economies withstand price increases for gasoline, in which crude oil is a key ingredient. Two examples are China, where more than 50% of all new cars sold are electric, and Nepal, where that share sits at at 70%. In light of this evidence, countries across the world are being urged to accelerate the transition from fossil fuels. But the Iran war may also make that more difficult. Challenges for renewables Though it has re-energized calls for clean technology, the war and resulting supply chain disruptions are also posing issues for the clean energy transition. Chokepoints in the strait of Hormuz, for instance, are disrupting the transport of metals needed to construct solar panels, such as aluminum . The Middle East also accounts for around 9% ​of global aluminum production, and producers in the region have begun to shutter or scale b...