Strait of Hormuz disruption hit oil, LNG and fertiliser global flows.
Clean energy seen as key to reducing fossil fuel vulnerability risks.
Renewables, electrification and efficiency flagged as fastest resilience strategies worldwide.
Accelerating clean energy deployment is the most effective way to build resilience against fossil fuel price shocks, stated the Energy Transitions Commission (ETC) report, titled 'Lessons on Energy Security after the Hormuz Crisis' released on May 15.
The recent closure of the Strait of Hormuz disrupted 18.4mn barrels of oil per day—the largest supply shock on record—as well as 20% of global liquefied natural gas (LNG) trade and one-third of globally traded fertilisers. These disruptions have hit emerging and import-dependent economies most severely and are currently costing Europe nearly €500mn per day.
1 May 2026
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Energy Security Through Renewables
The Commission warned that sustained high fossil fuel prices could add $1trn to $2trn in gross annual energy expenditure to the global economy. This extra cost is comparable to the $1.5trn annual investment gap required to build a net-zero energy system by 2050.
ETC Co-Chair Lord Adair Turner stated in the news release that fossil fuel dependence is a strategic vulnerability because these systems transmit shocks instantly through global prices. In contrast, 70% to 90% of clean energy costs are upfront capital, making them structurally more resilient to market disruption once assets are built.
The report identified five “win-win” strategies for governments: accelerating renewable electricity, electrifying road transport, switching to electric heating and cooking, scaling green fuels and fertilisers and increasing energy efficiency. For example, electric vehicle deployment alone could displace 5mn barrels of oil per day by 2030.
Market data indicates a shift is already underway. Chinese solar exports doubled in March, and 50 countries recorded all-time high solar imports. Additionally, European Union electric vehicle registrations rose by nearly 50% year-on-year in March.
The ETC cautioned against expanding fossil fuel infrastructure, noting that new oil and gas fields take five to ten years to reach production, whereas solar and heat pumps scale within months. The Commission urged policymakers to avoid blanket subsidies, new coal capacity, and long-term LNG lock-in, which reinforce the vulnerabilities that caused the current crisis.
Why Clean Energy Matters
The findings align with the 'Renewables 2022' report published by the International Energy Agency (IEA), which observed that fossil fuel supply disruptions underscore the case for renewables and energy security; and the IMF’s 'World Economic Outlook' published in April 2026, which warned that geopolitical conflicts and energy price shocks could slow growth and exacerbate inflation globally.
