War in Iran Continues to Create Renewable Energy Opportunities

War in Iran Continues to Create Renewable Energy Opportunities

Aerial view of wind turbines on a hilly landscape under a clear blue sky, promoting renewable energy. by Toàn Đỗ Công via Pexels.  War in Iran continues to push governments, companies, and consumers toward greater interest in Renewables.  It could even .

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War in Iran Continues to Drive Interest in Renewables

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By  and  | August 28, 2026

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Six months after US-Israeli strikes disrupted Middle Eastern fossil fuel production and turned the Strait of Hormuz into a naval battleground, the world is getting a fuller picture of how the Iran war has reshaped the economics of energy.

A handful of new reports show how, by dramatically raising fossil-fuel prices, the conflict has also been pushing governments, companies and consumers towards renewable energy, with a clear set of winners and losers emerging.

Global fossil fuel importers have paid more than $330 billion in extra costs — an amount equal to Finland’s 2025 gross domestic product — since the war began on Feb. 28, according to data from the Centre for Research on Energy and Clean Air (CREA), a Helsinki-based nonprofit. Meanwhile, higher energy prices have been a boon to a handful of oil-and-gas producing countries outside the war zone.

Read more: Iran War Is ‘Supercharging’ Clean Energy Transition, UN Climate Chief Says

Economies that had moved to ditch fossil fuels prior to the war have withstood the crisis better, too. In China, for example, renewable energy projects added since 2020 allowed the country to avoid nearly $8 billion in fossil fuel imports between March and July, CREA estimated.

These transformations could eventually have an effect on the environment: Overall, global greenhouse gas emissions were relatively contained during the first half of the year, inching up just 0.2% compared with the same period a year earlier, according to an early analysis of emissions through mid-year 2026 by the nonprofit Climate Trace.

“Renewables continue to grow. That does seem like good news,” says Ting So, lead analyst for Climate Trace. But he added that the volatility of disruptions in the Strait of Hormuz makes it hard to predict long-term trends.

Winners: Clean Tech and Non-Gulf Fossil-Fuel Producers

China has emerged as a beneficiary of the realignment, leveraging its dominance in green technology manufacturing at a time when soaring oil and gas prices are boosting interest in solar panels, batteries and electric vehicles.

Since the start of the conflict, China has logged five consecutive months of record clean tech exports measured in dollar terms, according to BloombergNEF. In July, Chinese carmakers sold more than half a million EVs and plug-in hybrids to overseas markets, a roughly 150% increase from a year earlier.

War in Iran Continues to Drive Interest in Renewables

Oil-and-gas producers in North and South America have also reaped windfall profits. As buyers shunned Gulf suppliers, fossil fuel companies in the US, Canada and Latin America ramped up production.

While a ceasefire could erode wartime supply premiums, researchers expect some of these market shifts to persist. “The boost to Latin America’s mining sector could remain,” said Rafael Rabioglio, a BNEF analyst, in the report. As high fuel costs accelerate global electrification, demand for critical minerals such as copper and lithium will benefit major producers including Chile and Peru in the long term.

Losers: Gulf States and Import-Dependent Regions

In the Persian Gulf, drone strikes and explosions have damaged key facilities, including Saudi Arabia’s largest oil refinery and a key liquefied natural gas export terminal in Qatar. Coupled with shipping bottlenecks, initial export losses across the Gulf averaged nearly $2 billion per day in March, according to an estimate from Rice University.

Beyond lost revenue, the war also damaged as much as $58 billion worth of energy infrastructure, which requires costly repairs, according to an April estimate by consulting firm Rystad Energy. The conflict also threatens to stall the region’s transition into a greener economy. “The war has driven up the cost of debt in the region, undermining clean power project economics in the near term,” BNEF analysts said in their report.

Import-dependent economies like Japan and South Korea, meanwhile, are suffering collateral damage. The two Asian nations, which depended on shipments through the Strait of Hormuz for most of their oil supplies prior to the Iran war, had no choice but to absorb higher fuel prices. In Africa, where many countries are net importers of refined oil products, the soaring prices have fueled a broader economic crisis. Ethiopia, for instance, recently experienced currency selloffs, forcing the country to draw down billions of dollars in its foreign exchange reserves to defend the weakening birr.

Accelerated Transition

The burden of higher energy prices has fallen disproportionately on developing economies. Poorer nations spent an additional 1% of their GDP absorbing the price shock, CREA found. That’s more than double the economic drag experienced by wealthier states.

As they seek to break up with fossil fuels, African nations are scrambling to add renewable energy. The region as a whole imported 37% more solar equipment from China in the first half of 2026 than in the same period last year, BNEF data showed. The current boom has spread across the entire continent, from South Africa to Nigeria and the Democratic Republic of Congo and Egypt.

“In countries where consumers are not being well shielded from higher fuel prices, they are moving very quickly to adjust their energy consumption pattern,” said Ethan Zindler, a BNEF analyst.

That same trend is also happening across developing Asia. For instance, in the Philippines — where initial fuel shortages prompted the government to mandate a four-day workweek to save on energy — demand for solar products has surged. In March, the country’s imports of Chinese solar equipment jumped 262% year-over-year.

EV adoption has accelerated, too. Monthly EV sales almost doubled in the Philippines and Indonesia in June and July compared to the same period in 2025, according to BNEF. In India, monthly passenger EV sales reached 30,000 units in those two months, up from fewer than 20,000 units last year.

In the first half of 2026, slight emissions reductions by China and the US, the world’s largest polluters, were balanced out by increases in India and Brazil, the Climate Trace analysis found.

At the same time, fears that this year’s energy-market disruptions would lead to a major near-term increase in coal-fired power did not become a reality, according to the results. Instead, over the first six months of the year, renewable energy actually expanded more quickly, So says.

“That’s a positive development that maybe not everyone thought” would happen, he says.

 

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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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Oman Water Services Launches Camelina Project for Sustainability

Oman Water Services Launches Camelina Project for Sustainability

Aerial shot of lush date palm plantations surrounding a farmhouse in Oman. by Eslam Mohammed Abdelmaksoud via Pexels

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Nama Water Services launches camelina biofuel project in Oman

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BioFuels International – 24 August 2026

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Nama Water Services has launched a new project to cultivate one of the leading sustainable crops used in biofuel production – camelina.

The initiative, in partnership with Hema Energy, forms part of the company’s commitment to environmental sustainability, supporting green economy goals and expanding the use of reclaimed water supplied under the Manhal Nama programme.

The project reflects Nama Water Services’ strategy to transform reclaimed water into a strategic resource that supports sustainable development through innovative agricultural applications.

It aims to strengthen water and food security, reduce carbon emissions and accelerate the transition to clean energy sources.

Nama Water Services will provide the project site and reclaimed water supplies, while Hema Energy will be responsible for implementing the project, overseeing its technical management and operations, carrying out monitoring and data analysis  in line with the highest technical and environmental standards.

The project is supported by several national institutions. Sultan Qaboos University will provide research, scientific and technical support, the Environment Authority will oversee environmental compliance, and the Oman Net Zero Centre (ONZC) will ensure alignment with Oman’s net zero targets and carbon sink initiatives.

The pilot project will assess Camelina’s agricultural performance under local climatic conditions, improve irrigation efficiency using treated water, monitor soil and water quality, measure environmental benefits and evaluate its potential for biofuel production and carbon credit generation.

The findings are expected to support decisions on expanding the commercial use of treated water for agriculture and contribute to the development of sustainable value chains for biomass and renewable energy production in the Sultanate of Oman.

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The Iran War is Creating Environmental Issues

The Iran War is Creating Environmental Issues

 

Breathtaking islands surrounded by vibrant turquoise waters and lush greenery. by SlimMars 13 via Pexels

 

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Iran oil spill: the war is leaving environmental scars that ceasefires cannot heal

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By Nima Shokri, United Nations University; Technical University of Hamburg

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The Iran War is Creating Environmental Issues The mangrove forests of Qeshm Island in southern Iran.
The mangrove forests of Qeshm Island off the coast of southern Iran.
Nmarandi / Shutterstock

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Oil slicks moving along Iran’s southern coast have reached the Hara mangrove forests of Qeshm Island.  Iranian authorities say the extent of the contamination is still being assessed and the source of the oil pollution has not yet been established.  But several oil spills have been detected in the region since the war between the US and Iran began.

The Hara forests lie in the Khuran Strait, which separates Qeshm Island from mainland Iran. This waterway is close to the Strait of Hormuz – one of the most strategically important marine corridors on Earth. The Strait of Hormuz is normally discussed through the vocabulary of geopolitics: barrels of oil, shipping lanes, energy prices and global trade.

But beneath that geopolitical map lies another map that receives far less attention. The Strait of Hormuz and its surrounding waters are home to mangroves, coral reefs, seagrass beds, fisheries and coastal communities. They also provide the seawater upon which some of the world’s most water-stressed societies depend.

The Strait of Hormuz is not only an energy chokepoint. It is an ecological chokepoint.  And prolonged conflict exposes both at the same time.

An oil slick on open water is a serious pollution event. But oil entering a mangrove ecosystem creates a different problem. Mangroves occupy the boundary between land and sea, with dense root systems that slow water movement and trap sediments.

The same characteristics that make these ecosystems extraordinarily productive also make them effective traps for pollutants.

While oil can be removed from the water surface, oil that penetrates shorelines and fine sediments can be much more difficult to address. Contamination can affect roots and seedlings and expose organisms living in or feeding on these sediments to pollution. Fish and birds can be affected through ecological pathways extending beyond the visibly contaminated trees.

Qeshm should also not be viewed in isolation. Earlier in the war, another oil slick near Kharg Island in the northern Persian Gulf was tracked. Satellite imagery indicated that currents were carrying contamination through the Khuran Strait towards the mangroves.

Researchers using satellite observations have also reported a marked increase in the frequency and extent of oil pollution in the Gulf since the beginning of the war. This is where the environmental significance of prolonged conflict becomes much larger than any individual spill.

What needs to happen now

The first priority in Qeshm must be containment. Preventing additional oil from entering the mangroves is far more effective than attempting to remove it once it has penetrated a complex inter-tidal environment.

However, containment alone is insufficient. Authorities need to establish the source and chemical characteristics of the contamination, map its spatial extent, combine field observations with satellite monitoring and sample water and sediments.

They will also need to establish baseline conditions in affected and unaffected areas and monitor mangrove condition, aquatic organisms and other ecological indicators over time.

Such efforts may themselves be constrained by the war. Conflict can make scientists, environmental agencies and emergency-response teams less able to reach the places where intervention is most urgently needed.

The response must also avoid causing additional damage. Following the 1989 Exxon Valdez oil spill off the coast of Alaska, high-pressure hot-water washing removed stranded oil but also caused substantial additional damage to shoreline organisms and habitats.

In mangroves, where roots and sediments are particularly sensitive to physical disturbance, similarly aggressive interventions can do more harm than good. Most importantly, monitoring of the Hara mangrove forests cannot stop when the coastline looks clean.

A map of Qeshm Island in southern Iran.
Qeshm Island in southern Iran, separated from the mainland by the Khuran Strait.
Peter Hermes Furian / Shutterstock

There is a temptation during war to treat environmental damage as secondary: something to assess after questions of military strategy, diplomacy, energy supply and economic loss have been addressed. That hierarchy is difficult to defend.

Environmental systems are infrastructure. Mangroves protect coastlines and sustain marine ecosystems. Fisheries support livelihoods and food security. Soils support agriculture. Aquifers store water and coastal waters feed desalination plants.

Healthy ecosystems provide forms of resilience that become more – not less – important during periods of political and economic instability. Destroying or degrading them thus creates liabilities that can persist long after military operations have ended.

And unlike a bridge, pipeline or building, an ecosystem cannot necessarily be reconstructed. A mature mangrove forest is the product of biological processes that unfold over time. Lost ecological functions may take years to recover, and some changes may prove difficult to reverse.

This is why what is happening at Qeshm deserves attention well beyond Iran. The question is not whether this particular oil contamination represents an ecological catastrophe. We do not yet have the evidence to make that judgment. The more important question is what the event is telling us.

It is telling us that in a region where enormous volumes of hydrocarbons, dense maritime traffic, critical water infrastructure and fragile coastal ecosystems occupy the same narrow geography, environmental risk cannot be separated from geopolitical risk.

If the Iran conflict continues, the probability of further accidents, infrastructure damage, pollution and interrupted environmental management will increase. Some consequences, such as burning vessels, blackened coastlines or dead vegetation, will be immediately visible.

But others will accumulate quietly – in sediments, soils, groundwater, food webs and stressed ecosystems. It is these consequences that may ultimately prove harder to repair. While all wars eventually end, their environmental consequences do not necessarily follow the same timetable.The Conversation

Nima Shokri, Executive Co-Director, Institute for Water, Environment and Health (UNU-INWEH), United Nations University; Technical University of Hamburg

This article is republished from The Conversation under a Creative Commons license. Read the original article.


 

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Will COP31 Finally See Promises Become Action Soon?

Will COP31 Finally See Promises Become Action Soon?