Energy Security at Risk: Urgent Call for Accelerated Clean Energy Initiatives
As global economies grapple with the repercussions of fossil fuel dependency, the Energy Transitions Commission (ETC) highlights the potential of clean energy to mitigate future crises. The recent report underscores the need for swift action to transition from fossil fuels to more sustainable energy sources.
Key Insights
- Traditional fossil fuel systems are prone to disruptions due to their reliance on continuous commodity flows through critical chokepoints, which can lead to immediate global price impacts. Conversely, clean energy investments primarily involve upfront capital, with technologies like solar and wind providing stable energy outputs over time regardless of market fluctuations.
- Persistently high fossil fuel prices could lead to an additional $1-2 trillion in annual oil and gas expenditures, which mirrors the current clean energy investment shortfall of $1.5 trillion needed to achieve a resilient energy system by 2050.
- Investing in new fossil fuel infrastructure could perpetuate future vulnerabilities, whereas renewable technologies such as rooftop solar and electric vehicles (EVs) can be rapidly deployed, potentially reducing global oil and gas demand significantly by 2035.
LONDON, May 15, 2026 /PRNewswire/ — The ETC’s newly released report, Lessons on Energy Security after the Hormuz Crisis, warns against increasing fossil fuel infrastructure, suggesting it could exacerbate existing vulnerabilities. The report advocates for accelerating clean energy adoption as a countermeasure to the volatility of fossil fuel prices and geopolitical tensions.
The Impact of the Hormuz Crisis
The recent closure of the Strait of Hormuz represents an unprecedented supply shock, disrupting 18.4 million barrels per day of oil, impacting 20% of the global LNG trade and a third of worldwide fertilizer trade. The crisis has particularly affected emerging economies reliant on imports. The majority of crude oil and LNG passing through Hormuz is headed for Asian markets.
Oil prices in Asia surged from approximately $70 to $90-120 per barrel, while LNG prices jumped from $10-12 to over $25 per MMBtu. These increases are directly affecting transportation, food, household energy, and industrial costs, disproportionately impacting lower-income households and small businesses. Europe faces economic losses nearing €500 million daily due to these disruptions.
The ETC estimates that if current price levels persist, the global economy could face an additional $1-2 trillion in fuel expenses in 2026, with no increase in energy consumption.
Resilience Through Clean Energy
This crisis marks the first instance where scalable alternatives to fossil fuels are available across major energy demands. Countries like Spain, with a high percentage of renewable electricity, have experienced minimal energy price increases compared to nations heavily reliant on gas, such as Singapore. As Adair Turner, Co-Chair of the ETC, stated, “The current crisis shows that fossil fuel dependence is not only a climate risk but also an economic and strategic vulnerability.”
Proposed Government Actions
The ETC suggests a coordinated approach involving renewables, electrification, green fuels, and efficiency improvements to eliminate dependency on Hormuz oil and gas by 2035. Jules Kortenhorst, Co-Chair of the ETC, emphasizes, “The defining question now is whether governments act to build a more resilient system or to sustain one which is already vulnerable to disruption.”
- Boost renewable electricity deployment, especially when integrated with batteries and grid enhancements.
- Promote EV adoption to significantly cut global oil import expenses.
- Encourage electrification of heating and cooking to reduce gas and LPG reliance.
- Advance the use of green fuels and fertilizers for lower emissions in food, shipping, and aviation sectors.
- Enhance energy efficiency through building improvements and advanced energy systems.
While short-term trade-offs are necessary, the ETC advises against broad fossil fuel subsidies and major investments in new coal or LNG infrastructure to maintain a focus on sustainable energy transitions.
Market Shifts
Both consumers and industries are increasingly turning to alternative energy sources. Chinese solar exports have surged, and there is significant growth in solar PV imports and EV registrations worldwide. In India, LPG shortages have led to a dramatic rise in induction cooktop sales.
Download Lessons on Energy Security after the Hormuz Crisis.
About the ETC: The Energy Transitions Commission consists of global energy leaders dedicated to achieving net-zero emissions by 2050, aligning with the Paris climate goals to limit global warming. The ETC is hosted by SYSTEMIQ Ltd.
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SOURCE Energy Transitions Commission
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