Doubling down on fossil fuels in response to the spikes in oil and gas prices unleashed by the Iran war would be “completely delusional”, the UN climate chief is expected to warn on Monday, in one of his strongest attacks yet on planet-heating fossil fuels.
Addressing political and business leaders in Brussels, Simon Stiell will argue that dependence on oil and gas is “ripping away national security and sovereignty” and will urge them not to use the crisis as a pretext to slow the clean energy transition.
“Fossil fuels that supercharge disasters rake in trillions in taxpayer-funded subsidies globally,” he will say. “Money that could be far better spent”.
Climate Home News understands Stiell views the current crisis as a crucial moment to ramp up pressure against fossil fuels, as it lays bare the economic irrationality of new oil and gas investments compared with the benefits of renewable energy.
Stiell’s warning comes at the start of a pivotal week for energy policy in Brussels. Energy ministers meet on Monday to discuss soaring energy costs before environment ministers gather on Tuesday to debate climate targets and a proposal to dilute carbon dioxide emissions standards for cars. Energy security will also feature high on the agenda of the European leaders’ summit on Thursday and Friday.
Oil and gas prices surging
Oil and gas prices have surged after key Gulf producers halted output following Iran’s attacks on regional infrastructure and the closure of the Strait of Hormuz, through which a fifth of the world’s oil supplies pass.
The disruption is hitting Asia hardest. Nearly 90% of the region’s oil and gas flows east, and fuel shortages have already forced Bangladesh to shut universities early and the Philippines to cut civil servants’ working hours. Across the continent, import-dependent countries have scrambled to lock in supplies, driving up prices as they compete for the same cargoes.
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Europe has little direct exposure to the Strait of Hormuz disruption, but integrated global energy markets mean the continent will still pay more for its oil and gas imports.
European Commission President Ursula von der Leyen said last week that the Iran war had already cost European citizens an additional three billion euros ($3.4 billion) in fossil fuel imports. “That is the price of our dependency,” she added.
‘Renewables turn the tables’
But right-wing politicians have seized on the Middle East crisis to attack the bloc’s green policies, blaming them for rising energy prices and weakening competitiveness.
Some governments, including Italy, have called for the suspension of the Emissions Trading System (ETS), the continent’s main climate policy, which incentivises companies to invest in lower-carbon production by putting a price on pollution. Eight other governments have urged the EU not to weaken its carbon market.
Von der Leyen said abandoning the EU’s long-term strategy, focused on investment in renewables and nuclear, would be a “strategic blunder”.
Gulf oil and gas crisis sparks calls for renewables investment
Echoing her message, Simon Stiell is expected to tell leaders that “meek dependence on fossil fuel imports will leave Europe forever lurching from crisis to crisis”.
“This fossil fuel crisis will happen again and again in this new world disorder where some major powers do as they please,” the UN climate chief will say.
“Renewables turn the tables,” Stiell is expected to add. “Sunlight doesn’t depend on narrow and vulnerable shipping straits. Wind blows without massive taxpayer-funded naval escorts”.
The rollout of new wind and solar power capacity across Europe since the introduction of the Green Deal in 2019 has saved 59 billion euros ($67bn) that would have been spent on additional fossil fuel imports, according to analysis by think-tank Ember.
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