Global Governments: Iran War Spurs Clean Energy Policies

• Thirty-three governments have adopted new clean energy or energy efficiency policies in response to the Middle East conflict as of September 9.
• Despite these policy shifts, global greenhouse gas emissions slightly increased, and overall clean energy investments declined in the first half of 2026 compared to the previous year.
• Experts highlight a contradiction where governments simultaneously promote clean power and support fossil fuel expansion.
• Specific policies include supporting EV adoption, promoting renewables, and retrofitting buildings, with countries like the Netherlands, Spain, and the U.K. implementing comprehensive strategies.
• While these efforts are a step towards energy transition, their effectiveness requires sustained action over decades to significantly impact climate change.

Governments are currently navigating a complex landscape, simultaneously acknowledging the critical importance of clean power while continuing to support the expansion of fossil fuel infrastructure.

The ongoing Middle East conflict has prompted a significant, albeit insufficient, global response in clean energy policy. As of September 9, thirty-three governments worldwide have implemented new measures aimed at transitioning away from fossil fuels towards electricity or enhancing energy efficiency. This wave of policy adoption follows the outbreak of the war in February, initiated by the U.S. and Israel, which initially led some proponents of renewable energy to anticipate a rapid green transition driven by spiking oil and gas prices.

However, the reality has presented a more complex picture. While more than thirty governments have indeed enacted policies to reduce reliance on fossil fuels or improve energy efficiency, global greenhouse gas emissions have concurrently seen a slight increase. Furthermore, investments in clean energy experienced a decline compared to the same period last year, despite several years of prior growth. This dichotomy highlights a challenging global energy landscape where immediate geopolitical pressures are influencing policy, but broader climate goals remain elusive.

The policy shifts observed across these nations encompass a range of initiatives designed to accelerate the energy transition. These include robust support for electric vehicle (EV) adoption, active promotion of renewable energy sources, the replacement of traditional gas boilers with electric heat pumps, and comprehensive retrofitting programs for homes and businesses to reduce overall energy consumption. Notably, the Netherlands, Spain, and the United Kingdom are actively pursuing all these listed strategies. In Asia, a region characterized by substantial demand for solar power and electric vehicles, Indonesia is moving to replace some diesel power plants with solar installations, while simultaneously increasing its reliance on coal for heavy industries. China is also focusing on improving energy efficiency within its heavy industry sector and advancing the electrification of heavy vehicles. India and Indonesia are encouraging the shift to electric stoves to lessen dependence on imported liquefied petroleum gas for cooking, and Laos has suspended imports of gas and diesel cars until 2026 to boost its EV market.

Despite these varied efforts, a fundamental contradiction persists within the global energy framework. As Pauline Heinrichs, a war studies lecturer at King’s College London, observes, governments are currently navigating a complex landscape, simultaneously acknowledging the critical importance of clean power while continuing to support the expansion of fossil fuel infrastructure. This "dance" is evident in the United Kingdom, where a surge in solar installations is occurring even as the government considers expanding natural gas production. Globally, investment in wind and solar deployment saw a decline in the first half of 2026, with China accounting for the majority of this decrease, according to Rhodium Group’s Clean Investment Monitor. Conversely, in economies more sensitive to gas and oil prices, such as the U.S., Europe, and India, solar investment grew, and wind investment either remained stable or increased.

Despite the flurry of new government clean energy incentives, these actions have not yet significantly altered the trajectory of global climate change. Researchers from the Climate TRACE database of emissions point out that incentivizing EV purchases or promoting energy efficiency requires considerable time and scale to yield measurable results. This sentiment was echoed by Stanford University climate scientist Rob Jackson, who, in February, initially dismissed the idea that the conflict would boost homegrown renewables over imported fossil fuels as "wishful thinking," unless the conflict proved to be sustained. Six months later, Jackson noted his surprise that oil prices had remained above $90 or $100 a barrel for such an extended period.

Jackson further emphasized that while widespread promotion of electric vehicle incentives, charging infrastructure, and general electrification by dozens of countries could contribute to combating climate change, such actions must be sustained over years, even decades, to make a meaningful impact on the climate problem. This long-term perspective underscores the challenge, especially as many governments are simultaneously cutting fuel taxes, which, while offering immediate consumer relief, inadvertently disincentivizes the crucial shift away from fossil fuels. Experts interviewed by The Associated Press collectively agree that while the Iran war clean energy policies appear to be fostering some adoption, the world remains heavily dependent on fossil fuels, and the full impact of these new policies will take considerable time to materialize.

This article highlights a global trend of governments enacting clean energy and energy efficiency policies in response to geopolitical events. Lawyers and compliance officers should monitor these evolving policy landscapes for new regulatory requirements, potential incentive programs for green investments, and emerging compliance risks related to energy transition and emissions reporting across various jurisdictions.

Source: Reporting based on an Associated Press investigation.