US-Iran War Spurs Energy Transition Across Continents

US-Iran War Spurs Energy Transition Across Continents

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US-Iran War Spurs Energy Transition Across Continents

 

BRUSSELS/LONDON/SINGAPORE, Aug 26 (Reuters) – Six months into the U.S.-Israeli war with Iran, governments across Europe and Asia are scrambling to accelerate a renewables build-out in a bid to cut dependence on fossil fuel imports, providing a fresh impetus to the global energy transition.

As the effective closure of the Strait of Hormuz has choked off a fifth of the world’s oil and liquefied natural gas (LNG) shipments, governments from South Korea and Thailand to the European Union have pledged to increase funding for renewables.

Has the conflict delivered a boon to the clean energy transition? Here are some ways to measure the impact.

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US-Iran War Spurs Energy Transition Across Continents

RENEWABLES ARE SURGING, BUT COAL IS ALSO UP

Renewable power output is soaring across the world, and the International Energy Agency (IEA) expects it to become the top electricity source for the first time this year.

Since the war began, rooftop solar has proved attractive because it is quick and cheap to install. In the Philippines, high power prices driven by costlier imported fuel are pushing households and businesses onto solar, while a battery subsidy scheme is fuelling a rooftop resurgence in Australia.

European demand for rooftop systems has also jumped since the war began.

But coal is rising too. With the Strait of Hormuz closed and renewables still unable to guarantee round-the-clock power, coal-fired generation is set to grow — though the IEA’s forecast 8.5% jump in renewable output this year dwarfs the 1.4% rise in coal.

In the United States, where President Donald Trump has opposed green energy, renewable generation rose 10% in the first half of the year from the same period in 2025.

EMISSIONS ARE STILL CLIMBING

Even as renewable generation surges, the IEA expects emissions of the greenhouse gases that cause climate change to rise 1.1% this year to an all-time high of 14.2 billion tonnes.

In 2027, the IEA expects coal output to dip by 0.7%, but gas-fired power generation to rise 1.5% from this year’s levels. Curbing climate change will require even more renewable energy and investments in power grids and energy storage.

ASIA BEARS THE BRUNT

Asian economies most dependent on oil and gas through the Strait of Hormuz have absorbed the sharpest shock.

China leaned hard into solar, with output rising more than three times as fast as coal between March and July. India, Vietnam and South Korea went the other way, burning more coal. Some European countries also saw extra coal burn, but the IEA expects EU coal generation to resume its decade-long decline in 2026.

Last month, the Vietnamese government said it was considering building more coal plants to secure supply — despite pledging at the 2021 U.N. climate summit to build no new coal after 2030.

TRANSPORT

Most of the world’s oil is burned as transport fuel — in cars, trucks, ships and planes. The war has not collapsed that demand, but it has reversed the growth forecasters had pencilled in.

Higher prices, reduced air travel, softer Chinese consumption and faster EV adoption mean the world is now likely using less oil for transport than projected before the war. Goldman Sachs estimates gasoline-related demand fell about 20% at the April peak of the disruption; GL Consulting puts the drop nearer 15%.

Costlier fuel has pushed drivers toward EVs, and China — the world’s biggest maker — has seen its EV export value top $10 billion for the first time this year.

Electric models made up 63% of the country’s passenger-car retail sales in June, up from 53% a year earlier, according to BofA analysts, who estimate electrification explains roughly a third of China’s year-to-date decline in crude imports.

EV sales have also soared across Europe since the war began as high oil prices have caused pain at the pump.

HOW LONG WILL IT LAST?

As long as Hormuz stays shut, high oil and gas prices are likely to persist, strengthening the case for countries to invest in cheaper, home-grown renewables and reduce their exposure to volatile fuel costs. But whether a shift away from oil and gas gathers even more momentum is difficult to predict.

“Changing a nation’s energy mix requires investments, and higher interest rates will make the considerable upfront capital required for renewables and power grids more expensive. Thus, while the present conflict is likely to ultimately favour decarbonization, it is not a one-way street,” said Sverre Alvik, vice president and energy transition outlook director at DNV.

Many large Asian markets have substantial gas and coal resources to provide a buffer against Middle East supply disruptions and a lot more U.S. LNG supply is expected to come online between 2026 and 2030.

“As this supply materialises, LNG should become more affordable for import-dependent Asian markets, reducing the incentive for a permanent shift away from gas driven solely by the current conflict,” said Victor del Carpio Neyra, senior research associate at Aurora Energy Research.

 

(Reporting by Kate Abnett in Brussels, Nina Chestney in London and Sudarshan Varadhan in Singapore; Editing by Conor Humphries)

 

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The Poverty Cost of a Hotter MENA Is Showing Up Everywhere

The Poverty Cost of a Hotter MENA Is Showing Up Everywhere

High-rise residential buildings in Tripoli, showcasing urban life in Lebanon. by Alexander Popovkin via Pexels

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The Poverty Cost of a Hotter MENA Is Showing Up in Wallets and Child Health

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The Poverty Cost of a Hotter MENA Is Showing Up in Wallets and Child Health

Credit: ChatGPT

Climate change in the Middle East and North Africa (MENA) is increasingly becoming a question of household survival, public health and economic resilience rather than temperature alone. A study titled “Climate Change and Poverty in the MENA Region: Evidence from a Panel ARDL Model Using Household Consumption and Infant Mortality,” published in the journal Climate, examines how shifting climatic conditions are associated with both material well-being and child health across the region.

The research was conducted by Aziz Razzouki, Mounsif Ridaoui, Fadma Razzouki, Mohamed Oudgou, Mustapha Ouatmane and Abdeslam Boudhar. Using data from 22 MENA countries between 2000 and 2023, the researchers examine poverty through two different lenses: real household consumption expenditure and infant mortality.

The key insight is that climate vulnerability does not operate through a single channel or on a single timetable. Higher temperatures are associated with weaker household consumption in the short run and greater infant mortality in the long run, suggesting that climate stress can simultaneously erode economic security and deepen health-related deprivation.

Heat Is No Longer Just an Environmental Risk

The research highlights an immediate relationship between temperature and household consumption. In the preferred model, a 1% increase in annual average temperature is associated with an 8.4182% decline in real household consumption expenditure in the short run, although the estimate is statistically significant only at the 10% level. The authors suggest that higher temperatures may weaken household spending capacity through channels such as lower agricultural productivity, higher food prices and reduced incomes.

Household consumption is more than an economic statistic; it reflects whether families can continue paying for food, transport, healthcare and other basic needs when shocks hit. In a region where agriculture remains exposed to rainfall variability and water scarcity, climate stress can quickly become a purchasing-power problem. The policy challenge now is to prevent temporary climate shocks from pushing vulnerable households into deeper and more persistent deprivation.

The longer-term health findings reinforce this concern. A 1% increase in temperature is associated with roughly 0.093 additional infant deaths per 1,000 live births in the long run, holding other variables constant. The researchers explicitly caution that this is an association rather than evidence of direct causality, but the result still points to a troubling link between hotter conditions and child-health vulnerability.

What makes this particularly important is the slower nature of health-related deprivation. Household expenditure can fall relatively quickly, but health outcomes reflect the accumulated effects of nutrition, sanitation, maternal health, service access and infrastructure. The study’s error-correction results suggest that infant mortality adjusts more slowly than household consumption, underlining how climate shocks may leave a longer institutional and human-development imprint.

Poverty Reduction Cannot Be Separated From Macroeconomic Stability

The study finds that GDP per capita is strongly associated with better poverty-related outcomes, linking higher income levels with stronger household consumption and lower infant mortality. In the long run, a 1% increase in GDP per capita is associated with a 1.5626% increase in real household consumption expenditure and approximately 0.0446 fewer infant deaths per 1,000 live births. The significance is that climate resilience cannot be built independently of economic resilience. Countries with stronger incomes, infrastructure and public services generally have greater capacity to absorb shocks, finance adaptation and protect vulnerable groups. Conversely, where fiscal space is limited and household incomes are already fragile, the same climatic disturbance can generate much larger social consequences.

Inflation adds another layer of risk. The study finds a positive long-run association between inflation and infant mortality, suggesting that rising prices can contribute to worsening health-related poverty by eroding household purchasing power. This is particularly relevant in economies where food costs and imported essentials account for a large share of household expenditure, making price instability an important transmission channel between macroeconomic shocks and human welfare.

Climate adaptation and macroeconomic management need to be treated as complementary agendas. When heat, drought, food-price pressure and weak income growth occur simultaneously, households face compound rather than isolated risks. Protecting purchasing power during such periods may therefore be just as important as investing in physical adaptation infrastructure.

Education and Health Systems Are Part of Climate Resilience

Education stands out as a significant determinant of health-related poverty. A 1% increase in gross primary-school enrollment is associated with approximately 0.2403 fewer infant deaths per 1,000 live births in the long run. The researchers interpret this relationship as evidence that education and human capital can strengthen resilience by improving health knowledge, access to services and household capacity to manage economic and environmental shocks.

It widens the definition of climate policy considerably. Investments in education may rarely be labeled as adaptation spending, yet the findings suggest that stronger human capital can reduce some of the social vulnerabilities through which climate stress becomes poverty. For governments and development institutions, this argues for moving beyond narrowly defined climate programmes toward integrated strategies linking education, health, social protection and adaptation.

The study also produces a counterintuitive result: higher health expenditure is positively associated with infant mortality. The authors are careful not to interpret this as evidence that health spending worsens child outcomes, noting that countries with greater health challenges may increase spending in response to those problems. The finding raises a broader governance question about whether additional resources are reaching frontline services efficiently enough to translate expenditure into improved outcomes.

In countries with limited fiscal space, expanding health budgets without improving service quality, targeting and delivery may generate weaker results than expected. The study reinforces the importance of health-system efficiency, safe water, sanitation and maternal and child health services as core elements of climate resilience.

The Bigger Lesson: Adaptation Must Become Social Policy

The research treats poverty as multidimensional and climate impacts as dynamic. Previous work has often examined climate, income or health separately, whereas this study brings household consumption and infant mortality into a single regional framework while distinguishing between short- and long-run relationships. That approach better reflects the reality facing vulnerable populations, where economic, health and environmental pressures often interact rather than occur independently.

The findings support a stronger case for adaptive social protection, particularly in countries exposed to high temperatures, drought and fragile household purchasing power. The authors recommend mechanisms capable of protecting vulnerable households during extreme heat and drought, alongside investment in irrigation, water management, health resilience and education. They also argue that wealthier MENA countries could help more vulnerable neighbours through financing, technology transfer and capacity building.

The evidence nevertheless requires careful interpretation. The study relies on national-level data, uses a largely linear specification and cannot fully capture rural-urban disparities, extreme-event thresholds or important transmission channels such as governance, food prices, water access and social protection. Its additional robustness analysis also shows that while the direction of temperature effects remains broadly consistent, statistical precision falls when cross-country dependence is treated more aggressively.

However, this only clarifies the study’s broader message. Climate change in MENA should not be viewed as a standalone environmental problem that can be managed with isolated adaptation projects. Its effects are increasingly intertwined with household consumption, child health, education, inflation, public spending and institutional capacity, making climate resilience inseparable from the wider development model governments choose to build.

FIRST PUBLISHED ON: Devdiscourse
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How to Assess and Address System-Level Physical Risks Wisely

How to Assess and Address System-Level Physical Risks Wisely

Scrabble tiles spelling out ‘risk’ scattered on a rustic wooden background, symbolizing uncertainty. by Markus Winkler via Pexels

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How to assess and address system-level physical risks

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Climate risk does not stop at the boundary of a building or facility.  An organization’s resilience is inseparable from the health of the surrounding communities, ecosystems, infrastructure, and supply chains.  Yet for many businesses, climate-related risks are still assessed too narrowly, often only at the level of individual assets. A more connected approach enables clients to better identify, assess, manage, and transfer system-level physical risks. The steps below can help clients begin to take that broader view.

What are system-level risks?

System-level risks are threats to the suppliers, customers, infrastructure, resources, ecosystem services, governments, regulators, capital providers, and communities that organizations depend on but do not fully control (see Figure 1).

Whereas asset-level risk is predominantly related to potential property damage and business interruption, systems-level risk is driven primarily by the threat of business interruption, with property damage as a secondary concern.

For example, a company may harden an asset against flooding or heat. However, if during an extreme weather event, transport links fail, the power supply is disrupted, workers cannot reach the site, or critical suppliers are impacted, the business is still exposed.

System-level risks are particularly important to consider in the built environment, where organizations depend on complex networks of infrastructure, labor, energy, water, logistics, public services, and local communities. In towns and cities, a heatwave, flood, or wildfire rarely remains purely a local physical hazard.

However, until now, these risks have often been underestimated. Traditional risk assessments tend to focus on physical assets because they are easier to model and more familiar to business leaders. By contrast, system-level dependencies are more diffuse. They cut across functions and stakeholders rather than sitting within a single team or budget. That makes them harder to own, harder to quantify, and easier to overlook.

01 | The Marsh Risk Climate Adaptation Framework: organizations should consider both asset- and system-level considerations

Practical steps to address system-level risk

Addressing these risks requires a broad approach. To build true resilience, organizations need to look beyond their own boundaries and actively engage with regulators, suppliers, peer organizations, and critical infrastructure providers.

As put forward in Marsh’s report, Addressing the system-level resilience gap, organizations can achieve this by taking a four-step approach: identify system dependencies, assess materiality, manage risk more effectively, and transfer residual risk where possible. This is an iterative process that should be embedded into location strategy, procurement, capital allocation, and enterprise risk management to support more resilient decision-making across the business.

Marsh has also developed practical checklists, available in the report appendix, aligned to each system-level climate risk that organizations operating in urban and industrial areas can use. Designed to be actionable, they provide a useful tool for risk managers and other risk owners across the organization.

Additionally, tools such as Marsh’s Insurance Enabler Framework can be used to identify where resilience measures can improve risk outcomes and where pricing pressure may point to deeper vulnerabilities.

Helping clients turn complex climate risk into informed action

In our work, we regularly encounter barriers such as climate risk being communicated in technical or scientific language that does not always resonate with senior decision-makers.

Another challenge is organizational fragmentation. In many businesses, climate resilience sits in silos — perhaps within sustainability, operations, risk, or business continuity — rather than being embedded across governance, capital allocation, procurement, and strategy. As a result, organizations may understand that system-level climate risks present a threat, but they do not always have a consistent way to translate that awareness into coordinated action.

At the same time, the benefits of resilience are often long term, indirect, or difficult to express in financial terms, while the costs are immediate and visible. As a result, system-level risk can appear less urgent than it truly is. Marsh’s framework and checklists provide clients with a practical way to turn this challenge into an effective response.

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Green Wall as an Investment: Myths and Facts

Green Wall as an Investment: Myths and Facts

Stunning view of Dubai’s modern skyscrapers under a clear blue sky. by Joerg Hartmann via Pexels

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“Green Wall” as an Investment: Numbers vs. Marketing

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PRAGMATIKA  / Urbanism / 

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Green Wall as an Investment: Myths and Facts

Vertical gardening has become a symbol of modern and sustainable architecture. However, are “green walls” really an effective investment, or is it more of a successful marketing image? In her column for PRAGMATIKA.MEDIA, Natalia Korotka, a leading architect and general planner at the architectural and design company AIMM, analyzes common myths about vertical gardening, based on international research, real cases, and economic calculations, and explains under what conditions such solutions really work.

No visualization in a metropolis attracts as much as a facade covered with plants. Vertical gardening has become the visual language of sustainable development: it appears in every second concept of a new quarter, in every third presentation for an investor. The problem is that between the render and the real operation there is a chasm that the industry rarely shows to the client.

I am an architect-general planner, and my job is to evaluate solutions not at the moment of completion of the facility, but over the horizon of decades. From this perspective, vertical gardening is worth examining for some myths, each of which has its own digital reflection.

Myth 1: It’s cheaper than traditional landscaping

No. A systematic review of the cost-effectiveness of green walls (World Construction Symposium) shows that the life-cycle cost of a living wall can be more than ten times that of a green facade on cables or mesh, and the maintenance of a living wall is on average twelve times more expensive than simple facade greening. The classic study by Perini and Rosasco, which remains one of the basic studies on the subject, states bluntly that for some systems, the benefits—energy savings, increased property value—simply do not cover the costs of installation and maintenance over the life cycle.

A prime example is the Bosco Verticale in Milan, the most cited vertical gardening project in the world. It is not a wall, but a balcony garden of trees and shrubs, and it requires a team of professional climbers-gardeners who descend the facade on ropes to prune and inspect the plants.

Green Wall as an Investment: Myths and Facts

Bosco Verticale is a residential complex consisting of two towers, 110 and 76 meters high. The two skyscrapers were built in the Porta Nuova district of Milan between 2009 and 2014. The authors of the project are Italian architects Stefano Boeri, Gianandrea Barreca and Giovanni La Varra.

It is estimated that residents pay an additional seven euros per square meter of housing each year just for the care of the plants – this is a separate item of home maintenance, comparable to full-fledged cleaning or security.

Myth 2: Plant it once, and it grows on its own

Living systems require continuous management of irrigation, nutrition, and drainage. Bosco Verticale uses about 3,5–5,7 thousand cubic meters of water per year for irrigation, and this is in a project with centralized humidity sensors and automated irrigation — that is, in a system designed as competently as possible.

A counterexample is the Qiyi City Forest Garden complex in Chengdu. Eight towers with balcony gardens were to become a “vertical forest” for 826 apartments. The developer planted the plants in advance, but did not lay down a system for constant care and drainage.

Green Wall as an Investment: Myths and Facts

Qiyi City Forest Garden in Chengdu

When the apartments were not immediately occupied, the plants on the abandoned balconies grew out of control, water stagnated in the pots, and the building became a mosquito breeding ground, which is why most of the owners at that time refused to move in at all. This is not a story about a “bad idea” – it is a story about landscaping designed without answering the question “who will take care of it in five years and how?”

In European cases, we see the same pattern: companies that install green walls admit that the cause of degradation of living facades is almost always not the climate or plants, but management. Maintenance contracts cost an average of about 10% of the cost of the wall itself each year, and this is where customers often try to save first.

Myth 3: It significantly cools the city

The effect is there, but it is greatly exaggerated compared to how it is presented in marketing materials. A study in temperate European climates showed that green walls reduce air temperature by at most 1–1,2°C. This is significantly different from the indicators in tropical or subtropical climates, where, due to higher humidity and more intense transpiration, cooling reaches 2–5°C, and in some modular systems with a substrate – even 10–14°C.

In other words: a technology that works great in Singapore or Barcelona gives many times weaker results in the climate of Kyiv or Lviv. This is not a reason to abandon landscaping altogether – it is a reason not to rely on vertical systems as a tool to combat the urban heat island where ordinary trees and shading are more climatically effective.

Myth 4: Plants thrive equally in different zones

Even in the mild climate of Madrid, the creator of the most famous “green wall” in Europe – the CaixaForum facade – selected almost 300 species of plants specifically for contrasting seasons: hot summer and cold winter. This is a design at the level of botanical research, not decorative landscaping. In a climate with sharp temperature drops, spring frosts after thaws and unstable humidity – which is exactly the characteristic of the climate of most of Ukraine – the selection of species and the system of root zone protection become a determining factor in the survival of the system.

What does this mean for projects in Ukraine?

Vertical gardening is not a universal solution, but a highly specialized tool with high operational requirements. It is justified where there is a customer who is ready to finance professional care for years in advance, a climate zone that does not destroy the system with frost and humidity drops, or a careful selection of plants adapted to this zone, and a realistic understanding of the effect of such gardening.

Photo: Daniel Funes Fuentes/Unsplash

In our projects at AIMM, we treat vertical gardening as an engineering system with an operating budget, not as a final touch to the presentation. If the customer is not ready to lay the cost of maintenance for decades to come, it is more honest to talk about traditional gardening right away – it is less spectacular on the render, but it really lives longer than until the first winter without watering.

Sustainability is not measured by how impressive a solution looks on opening day, but by whether it continues to work five years later without extraordinary effort. By this criterion, most vertical gardens fail the test long before the first plants appear, so every solution must be balanced and harmonious.

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UAE Professionals Taking on More Responsibilities and AI Use

UAE Professionals Taking on More Responsibilities and AI Use

A stunning view of the iconic Etihad Towers reaching toward the sky in Abu Dhabi. by Khalid via Pexels

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UAE professionals taking on more responsibilities without more pay, study finds

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Nearly half are working longer hours, while 73% now use AI to cope with growing workloads

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Dhanusha Gokulan, Chief Reporter
Gulf News – Last updated: 

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A new study by Robert Walters found that 79 per cent of UAE professionals say their job responsibilities have expanded over the past year, with many reporting longer working hours and increased use of AI to manage growing workloads. Picture used for illustrative purposes.

.A new study by Robert Walters found that 79 per cent of UAE professionals say their job responsibilities have expanded over the past year, with many reporting longer working hours and increased use of AI to manage growing workloads. Picture used for illustrative purposes.Virendra Saklani/Gulf News

 

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Dubai: A new study has revealed that nearly eight in 10 professionals in the UAE say they are doing far more at work than they originally signed up for, with many taking on extra responsibilities without additional pay, promotions or formal recognition.

Global talent solutions firm Robert Walters found in its study titled “Shadow Workloads”: 79 per cent of UAE professionals said their roles had unofficially expanded over the past 12 months, creating what the company describes as “shadow workloads” — additional responsibilities that gradually build up without being formally acknowledged.

The findings suggest that many employees are coping by working longer hours. Almost half (49 per cent) said they are spending more time at work, while a quarter (25 per cent) said they delegate tasks wherever possible.

Despite the growing workload, only 17 per cent of professionals said they had spoken to their managers about the increase in responsibilities.

Andrew Powell, Chief Commercial Officer at Robert Walters, said many businesses are operating under financial pressure and are trying to achieve more with existing teams.

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“Many organisations are navigating a tough operating environment right now, facing ongoing cost pressures and the need to deliver more with fewer resources,” he said.

He added that while it is natural for roles to evolve, problems arise when extra work is not formally recognised.

“When that shift happens without clear visibility or formal recognition, it can create ‘shadow workloads’ – where additional responsibilities build up informally over time.”

UAE workplaces adapting quickly

Oli Sanford-Scutt, Senior Director at Robert Walters Middle East, said professionals across the UAE are increasingly reporting that their roles have quietly expanded as businesses adapt to a rapidly changing environment.

“The UAE’s business environment moves fast, and organisations have had to adapt quickly, but that pace of change means additional responsibilities can accumulate before anyone has had a chance to address them,” he said.

He warned that if left unchecked, the added pressure could become normalised, increasing the risk of burnout and lower productivity.

AI helping workers — but also adding pressure

The report found that artificial intelligence is becoming a key tool for employees trying to keep up with growing workloads.

Nearly three-quarters (73 per cent) of UAE professionals said they now use AI tools to complete tasks they would not normally have been able to do.

The report also referred to a recent Harvard Business Review study, which found that AI adoption among employees at a US technology company expanded the scope of work, increased the pace of work and led to longer working hours, contributing to what it described as “workload creep”.

Powell said AI has clear productivity benefits but warned it must be introduced carefully.

“AI is already proving to be a powerful tool for boosting productivity and helping employees step into new areas more quickly.”

However, he added: “The challenge is ensuring it’s implemented in a way that genuinely reduces pressure rather than simply raising expectations.”

Sanford-Scutt said the UAE’s rapid adoption of AI gives businesses a competitive advantage, but it can also raise expectations of employees without formally changing their roles.

“When AI enables people to take on tasks beyond their usual remit, expectations can shift without anyone explicitly saying so.”

Burnout becoming more common

The research also found that many professionals are experiencing what it calls a “competence hangover” — a feeling of mental exhaustion, brain fog and emotional fatigue which comes after long periods of ‘high performance.’

More than two in five respondents (43 per cent) said they experience this regularly, while another 31 per cent said it happens from time to time.

Powell said taking on new responsibilities can benefit both employees and employers, but only if the extra effort is properly recognised and managed.

“If that effort isn’t recognised or managed effectively, it can lead to fatigue and diminishing returns, impacting everything from decision-making to overall productivity.”

He said organisations need to identify where workloads are increasing and respond by redistributing work, investing in better tools or bringing in temporary support where necessary.

“Ultimately, organisations that strike the right balance between efficiency and sustainable workloads will be better positioned to maintain long term performance.”

Dhanusha Gokulan
Dhanusha Gokulan, Chief Reporter
Dhanusha is a Chief Reporter at Gulf News in Dubai, with her finger firmly on the pulse of UAE, regional, and global aviation. She dives deep into how airlines and airports operate, expand, and embrace the latest tech.

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