The ongoing conflict in Iran has underscored the importance of advancing domestic clean energy sources, though industry leaders caution that the current impetus for renewable energy may not persist. Xavier Barbaro, chief executive of Neoen—a global renewable energy company owned by Brookfield—described the crisis as a stark reminder of the value of green, sovereign, and locally sourced energy. Neoen, with nearly two decades of experience constructing solar and wind farms and deploying large-scale battery storage systems worldwide, highlighted that energy security is closely linked to the rapid deployment and competitiveness of renewables.

Despite this recognition, Barbaro expressed skepticism about the long-term impact of the current energy crisis on accelerating the transition to renewables. He pointed to the aftermath of the Ukraine war, where initial surges in clean energy momentum began to diminish after one to two years. He emphasized that the most effective strategy is to demonstrate that renewable energy is not only cost-effective but also provides the fastest route to energy independence.

The conflict has, in the short term, driven some countries to increase coal consumption, particularly across northeast and southeast Asia. Consultancy Rystad Energy projects that Asia-Pacific coal use will rise by an additional 150 million tonnes by 2030, on top of approximately 7.26 billion tonnes consumed in 2025. North America has similarly ramped up fossil fuel production to meet domestic demand and support exports. Governments such as Germany, Brazil, and South Korea have also extended financial assistance to fossil fuel users through subsidies and tax relief.

These responses have drawn criticism from environmental groups like Climate Action Tracker, which argue that measures such as flat-rate fuel subsidies, tax cuts, and price caps risk entrenching fossil fuel dependence. Conversely, many regions have witnessed a surge in consumer adoption of solar panels, electric vehicles, and home battery systems. India installed 2.7 gigawatts of rooftop solar capacity in the first quarter of this year—more than twice the amount added in the previous quarter. The United States also recorded strong residential solar growth, contributing nearly 1.2 gigawatts in that period. The Philippines has emerged as a significant market for Chinese solar exports and expedited over 20 large-scale renewable projects following oil and gas market disruptions.

Policy makers are encouraged to create favorable conditions for electrification and renewable investments. Stientje van Veldhoven, the Netherlands’ climate and green growth minister, pointed to the need for improved grid infrastructure, financial incentives, and support for innovation. Several governments, including those of the UK, the EU, and South Korea, have reinforced or expanded renewable energy commitments, building on last year’s milestone when renewables surpassed coal in power generation. China presents a contrasting picture, simultaneously expanding coal power while enshrining renewables, nuclear, and environmental goals in its new five-year plan.

According to the Global Energy Crisis Policy Monitor, more than two dozen countries and the European Union have initiated policies and investments to promote clean energy and electrification. However, the impact in Europe appears less transformative than after the Ukraine war. Lord Adair Turner, co-chair of the Energy Transitions Commission, stated that the current crisis may provide some momentum—particularly in Asia—but cautioned that it remains too early to determine if it will mark a major turning point.

The International Energy Agency reported that global energy investments are set to reach $2.2 trillion this year, predominantly directed toward renewables, nuclear, storage, low-emission fuels, and efficiency measures—roughly twice the amount allocated to fossil fuels. Much of the investment planned through 2026 was locked in before the recent conflict, complicating assessments of its full effects.

On the international stage, Brazil’s André Corrêa do Lago, chair of the upcoming UN COP30 climate talks, described the crisis as an “important moment for climate,” emphasizing the increased urgency for countries to reconsider their energy strategies. Murat Kurum, Turkey’s environment minister and incoming COP31 president, has proposed a voluntary global target for electricity to cover 35 percent of energy demand by 2035, up from around 20 percent today. While Turkey continues to expand coal-fired plants, it is simultaneously advancing wind, solar, and battery projects.

Kurum noted that while governments must urgently shield citizens from rising energy costs, those with prior investments in renewables have fared better. “Anybody with rooftop solar or an electric car can feel the benefits in their pocket,” he said, underscoring the practical advantages of clean energy amid global energy volatility.