Recommendations of the Editorial team
The Strait of Hormuz has been blocked for almost two months – with the result that oil and gas prices worldwide are skyrocketing.
In the US, the price per gallon of gasoline has risen by more than a dollar since the lockdown, and diesel has increased by almost 50 percent. In Europe, gas prices rose by around ten percent, the region is struggling with a jet fuel shortage and concerns about the supply of liquefied natural gas (LNG). Asia is hit even harder: around 20 percent of the world’s oil and LNG pass through the strait, and more than 80 percent of it flows to Asia. Several Asian countries – including the Philippines, Japan and South Korea – are now facing a serious energy crisis.
All of this is undoubtedly bad news for consumer prices in the short term, but could benefit the climate in the long term. China produces the majority of the world’s solar modules, and Chinese solar exports hit a record in March. Exports of lithium batteries are also increasing sharply. Sales figures for electric vehicles are increasing worldwide.
Reduce dependence on oil
“The fact that countries have to import fossil fuels from distant regions makes them vulnerable to uncertainty,” Mark Z. Jacobson, a professor of civil and environmental engineering at Stanford University, tells Rolling Stone. “It is obvious that many countries want to reduce this dependence. The way to achieve this is through their own electricity and heat supply from clean, renewable sources – especially wind, solar, geothermal energy and hydropower. Every country has the potential to do this on its own.”
Jacobson points out that the South Korean government recently pledged to reach 100 gigawatts of renewable energy capacity by 2030. The country’s energy minister said the Iran war was “a significant turning point” for South Korea to steer away from oil and toward renewable energy.
“Many countries are 100 percent dependent on oil imports and do not produce anything themselves,” says Jacobson. “These countries are particularly vulnerable. It stands to reason that they want to switch to electrification.”
Europe’s hesitant reaction
According to Jacobson, similar developments are emerging in Europe, where some countries are beginning to accelerate their energy transition. Great Britain, for example, decided last month to require heat pumps and solar systems in new buildings. Meanwhile, Poland is investing more in renewable energies and nuclear power. Jacobson is also seeing a noticeable increase in interest in rooftop solar systems across Europe.
Federica Genovese, a professor of political science and international relations at the University of Oxford with a focus on climate policy, tells Rolling Stone that it is not yet clear how big the impact of this energy crisis will ultimately be on Europe.
“The EU is trying to push member states… towards an energy transition – now marketed as a mechanism for energy security and economic resilience – but it remains to be seen whether countries will follow through,” says Genovese.
Italy, Germany and the lessons of Ukraine
Genovese points out that Italy is the hardest hit in Europe by natural gas disruptions, but the country’s far-right politicians are not pushing for an energy transition. Although Germany is working on switching to renewable energy, it is also looking for ways to reduce gasoline prices.
Not long ago, Europe was struggling with an energy crisis – as a result of the war in Ukraine and the continent’s dependence on Russian oil. According to Genovese, this has already put countries on a course to reduce their dependence on energy imports.
“One of the reasons why some European countries are now a little better protected is precisely because of the bitter pill they had to swallow with the energy shock caused by the Russian invasion,” says Genovese. “I’m not saying that Europe is doing well, and politically this Iran crisis is serious – but from a purely economic point of view… Europe is showing itself to be more resilient to this shock than in 2022, precisely because it has learned the lessons from the Ukraine crisis.”
USA: No interest in change
The US government, on the other hand, has no interest in promoting the expansion of renewable energies or reducing dependence on fossil fuels. President Donald Trump loathes renewable energy and is an ardent supporter of the fossil fuel industry. However, Americans’ interest in electric vehicles and solar energy is growing – so consumers may still drive the country’s energy transition, especially given the economic impact.
“Every country in the world can switch to clean, renewable energy. The benefits include lower costs, less land use, more jobs and less health damage from air pollution,” says Jacobson. “Regardless of whether people see climate change as a problem, renewable energy is more efficient and saves lives. What’s wrong?”
