When the current administration came to power last year, US policy on renewables shifted substantially. Under the Biden administration, the Inflation Reduction Act aimed to make the US competitive in the global renewables market. However, the Trump administration reversed course, adopting policy prioritizing oil and gas power at home and abroad. Although action by the administration in Iran may be undermining their fossil fuel-centered energy agenda. The UN Climate Chief recently gave remarks in Paris, where he drew a link between the energy crisis stemming from the Iran war and an increased urgency for renewables:
“The conflict’s brutal social and economic impacts have spread like a pandemic to every nation – as fossil fuel cost chaos squeezes household, business and government budgets. The fossil fuel cost crisis now has its foot on the throat of the global economy, and stagflation on the march…
Most immediately, we should focus on areas of greatest urgency and impact: On grids and storage – more investment is essential to taking us to the next level of the clean energy transition. And slashing methane – an ultra-potent greenhouse gas – delivering fast climate benefits while saving money. We must also be laser-focused on food security – protecting crop yields from climate shocks, as the war drives fertilizer shortages, threatening 45 million people with acute hunger this year.”
The scarce and bottleneck-laden nature of fossil fuels makes oil and gas supply chains particularly brittle. As energy independence takes on growing importance, many countries are turning to renewables, which may come from a variety of sources. This isn’t to say renewable supply chains are perfectly resilient. Critical minerals such as lithium underpin battery production, which is core to electrification strategies powered by renewables. However, for the time being, these supply chains are under less pressure than crude oil.
Our members can learn more about global decarbonization strategies here.
Interested in a membership with access to the complete range of benefits and resources? Sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.
Practical Guidance for Companies, Curated for Clarity.
