As well as claiming more than 550 lives, the war between the United States and Israel and Iran threatens to inflict severe economic damage across the world, by pushing up the oil, gas and energy prices.
About a fifth of the world’s oil and liquefied natural gas (LNG) passes on ships through the Strait of Hormuz, a narrow stretch of water separating Iran from the Gulf countries.
With Iranian missiles hitting oil and gas sites in the Gulf – including the world’s largest LNG export facility Ras Laffan – and fears that ships may be targeted, Qatar has halted its LNG production and traffic through the Strait has slowed drastically.
The disruption has sent oil and LNG prices surging, raising costs for households and businesses worldwide that rely on fossil fuels for electricity, transport, heating and manufacturing.
In two online briefings – focused on Europe and Asia, respectively – energy analysts warned journalists that prolonged disruption could trigger a global economic crisis. Governments should seek to reduce their reliance on oil and gas – through investments in clean energy and energy efficiency – rather than just seeking non-Gulf oil and gas suppliers, they said.
Seb Kennedy, founding editor of EnergyFlux.News, said the war is “a bonanza for US LNG exporters and a catastrophe for everyone else.” He added that “if this goes on for months and months then [the energy crisis] could be on the scale we saw in 2022”.
Asia hit hardest
Asian economies are expected to bear the brunt as the largest buyers of Qatari LNG. Research by ZeroCarbon Analytics suggests that Japan and South Korea, which get over three-fifths of their energy from oil and gas imports, are among the most vulnerable.
Sam Reynolds, a researcher from the Institute for Energy Economics and Financial Analysis said that Japan’s definition of energy security prioritises diversifying fossil fuel supply over promoting domestic renewables and, while Reynolds said this crisis could change that, he doubts that it will. Both Japan and South Korea are likely to speed up their pursuit of nuclear energy though, he added.
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Several South-East Asian nations – like Vietnam, the Philippines and Thailand – have invested in infrastructure to import LNG over the last few years in an attempt to gain energy security by diversifying supply routes beyond natural gas pipelines.
But ZeroCarbon Analytics researcher Amy Kong said that these countries were “seeing the same problems with new dealers” as “all the cards are held by a few LNG suppliers”. As these countries have huge untapped renewable potential, she said that “clean energy – not LNG – would be the key to avoiding impacts from these crises”.
Khondaker Golam, research director at Bangladesh’s Centre for Policy Dialogue, said Bangladesh’s already strained energy system will come under further pressure. In the short term, the government is likely to ration supply and seek LNG cargoes from outside the Gulf. Over time, however, the crisis could accelerate implementation of the country’s rooftop solar programme and other renewable projects.
China and India are also reliant on Gulf oil and gas and are now exploring alternative suppliers like Russia and, at least in India’s case, Canada and Norway. Over the longer term, Oxford University energy and climate professor Jan Rosenow said that China is also likely to double down on moving away from oil and gas by promoting electric vehicles, batteries and electrifying industries.
Although Europe imports a smaller share of its energy from the Gulf than Asia, it will not be insulated from price shocks. As Asian buyers compete for LNG cargoes – particularly from the US – gas prices will rise across the world, Kennedy added, with Europe already seeing increases.
Europe suffers too
Rosenow said that he was experiencing “deja vu” from when Russia restricted gas supplies to Europe, sparking a global energy crisis. Following that, he said, Europe had “not really managed to scale up the alternatives fast enough”, adding that “now we pay the price for that”.
He cited the example of Germany, where the government last week weakened requirements for buildings to install electric heat pumps instead of gas boilers. “We [in Europe] just haven’t made enough progress in terms of rolling out heat pumps, decarbonising industry and scaling up electric mobility,” he said.
Some in non-Gulf oil and gas producing countries have argued that this disruption justifies more production. Kennedy said the industry would “do everything it can to make that case”, but warned that new projects must consider demand decades ahead. By then, he said, “this conflict has probably long been forgotten about and we’re on to the next one”.
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In the United Kingdom, the government is under pressure from the right-wing opposition and US President Donald Trump to reverse its ban on licenses for new oil and gas fields in the North Sea.
But business secretary Peter Kyle said the crisis showed the UK must “double down” on renewables to protect its “sovereignty” as the crisis has exposed the country’s reliance on fossil fuels “from parts of the world which are fundamentally unstable”.
“We keep on seeing these lived examples of how instability, through regional instability, is creeping into our energy prices for which the British government has no agency”, he said.
Interest rates stymie renewables
But in the short term and without government policy intervention, Morningstar equity analyst Tancrède Fulop told Climate Home News that the crisis is likely to hold back the development of renewables.
This is because rising inflation from higher energy costs is likely to prompt governments to raise the cost of borrowing, he said. As renewables projects typically require large upfront capital investment, higher borrowing costs can undermine profitability.
Gas-fired power plants, by contrast, typically require lower initial investment than solar, wind or hydro, but higher operating costs over time, as fuel must be continuously purchased.
“What we saw between 2022 and 2024 with high inflation, high gas and power prices – a bit similar to today – renewable companies materially underperformed because of those high interest rates,” he said, “so all in all it won’t be as simple as oil and gas prices are surging so it’s good for renewables”.
The post Gulf oil and gas crisis sparks calls for renewable investment appeared first on Climate Home News.
Gulf oil and gas crisis sparks calls for renewable investment
Climate Change
Early warning systems are saving lives in Central Asia
In recent years, the monsoon season in Pakistan has taken a new and dangerous turn.
July and August typically bring high levels of rainfall across the country, and while flooding isn’t uncommon, the extent and severity could be readily predicted.
These patterns have now changed. In 2022, extreme rainfall swept Pakistan and huge swathes of the country were under water. Sindh province experienced levels of rain 508% above average for the time of year.
Extreme weather in Pakistan is becoming the norm. The past 15 years have brought widespread flooding, loss of life and billions in financial costs. A post-disaster report, produced by the Pakistan Government, stated that the 2022 floods were “a wake-up call for systemic changes to address the underlying vulnerabilities to natural hazards”, citing the country’s lack of climate-resilient infrastructure.
But heavy rainfall is only one of the water-related issues that Pakistan faces. In a country with huge geographical diversity, from sweltering deserts to freezing mountain tops, the water stresses are equally as varied. In many regions the key concern is a lack of reliable, clean water that can be used to grow crops and feed families.
We must invest in early warning systems to tackle crises like Kenya’s drought
The risks of the Indus
The Indus River plays a critical role in Pakistan. This major artery travels almost the entire length of the country, an estimated 2,000 km, from the Himalayas to the Arabian Sea. It is a crucial economic lever, supporting nearly 90% of Pakistan’s food production and 25% of its overall GDP. What happens to this river – both human and natural impacts – has huge consequences for the rest of the country.
The government and civil society agree that urgent action is required to protect Pakistan’s fragile water resources. A new adaptation project – SAFER Pakistan – is seeking to address these concerns with solutions that can be used to solve similar climate-related issues elsewhere.
The US$ 10 million project is led by ICIMOD, an intergovernmental research centre, alongside UNICEF, and financed by the Adaptation Fund. The intention is to tackle six key issues that people face in the Indus Basin: cryosphere risks, drying springs, groundwater, pollution, unsustainable water use, and community resilience.
In practice this means exploring different solutions that put communities in control of their own adaptive capacity. One solution under development is the use of community early warning systems.
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A warning sign
According to researchers, early warning systems “aim to empower affected communities against hazards and help them to sufficiently prepare before disasters strike.”
The northern provinces of Pakistan – Gilgit-Baltistan and Khyber Pakhtunkhwa – are the main focus for testing these systems. In this mountainous region the Indus is fed by thousands of glaciers which sustain water flow during the dry season. At the same time, increased temperatures and unpredictable weather patterns are changing how these glaciers behave, leading to avalanches, increased snowmelt, and landslides.
As glaciers start to melt due to climate change, they can form large lakes high up on the mountain that can pose a serious threat to the communities living below. When these natural dams fail, huge quantities of water come careening down the mountain, a phenomenon called glacial lake outburst flood.
The SAFER project is exploring how to use local knowledge and observations of the mountain to ensure people know how and when to evacuate when these outbursts occur. This human intelligence will be combined with data from remote sensors to save lives and livelihoods. In total, over 435,000 people will be impacted by the project.
“Early warning systems often serve as the backbone of a multi-faceted response to reduce climate disaster risk,” commented Mikko Ollikainen, head of the Adaptation Fund. “But local information is often just as valuable as the real-time data you receive from sensors or satellites,” he added.
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Shaping an effective response
Community early warning systems – together with other preventive adaptation measures – are proving a popular solution to extreme weather events.
A separate adaptation project in the mountains of Central Asia is grappling with the same problem of glacial flooding. In this case, with US$6.5 million in funding from the Adaptation Fund, UNESCO has been implementing early warning systems across Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan for the past five years, with considerable success.
Diana Aripkhanova, a project officer at UNESCO, and based in Kazakhstan, told Climate Home that glacier lake outburst floods “represent an increasing climate-related hazard across the high mountain regions of Central Asia”.
“These events can trigger destructive floods and debris flows that affect downstream communities, infrastructure, and livelihoods,” she added.
The project utilises real-time data drawn from weather monitoring stations with community preparedness to shape a fast and effective response to life-threatening flooding. This includes training people on evacuation routes, safe locations and simulation drills. In addition, the project has tried preventative measures such as planting hundreds of trees in valleys prone to landslides to provide greater stabilisation.
In total, four early warning systems have been installed across the four countries involved in the project covering seven high-risk areas. As a result, UNESCO estimates these systems are protecting over 100,000 people.
“Early warning systems are a key risk reduction measure, allowing communities to evacuate in time and reduce potential loss of life and damage to assets,” added Aripkhanova.
Community participation
The active role of each community is built into these interventions. Ensuring local people are core contributors is seen as crucial to building long-term climate resilience.
These communities are witnessing the threats from climate change materialise on a yearly basis, and researchers are now tapping into that understanding when implementing adaptation projects.
After the 2022 floods, Pakistan’s development minister, Ahsan Iqbal, wrote that “there is an opportunity to do things differently” and that “enhancing Pakistan’s resilience to shocks and stresses amidst climate change, especially for the poorest…is essential for the country’s future.”
The climate shocks remain as strong as ever, but using the right tools and simple solutions can soften the blow when they occur.
Adam Wentworth is a freelancer writer based in Brighton, UK
The post Early warning systems are saving lives in Central Asia appeared first on Climate Home News.
Climate Change
Earth’s Greatest Underwater Migrations Are Disappearing
From the Amazon to the Mekong, migratory freshwater fish underpin food security for millions, but over 300 species need urgent conservation intervention, warns a new UN report.
Beneath the surface of the planet’s rivers and lakes, the historically heaving migrations of freshwater fish are thinning out. The blubbery-lipped Siamese giant carp of Asia’s Mekong River, the mottled brown goonch of India’s Ganges and the ancient-in-appearance beluga sturgeon of Europe’s Danube River are declining.
Climate Change
Border Communities Remain in the Dark About Federal Government’s Billion-Dollar Buoy Project
The industrial-grade buoys, already being installed in Brownsville, Texas, are meant to prevent unauthorized crossings. But experts warn the buoys could intensify flooding and change the river’s course.
Reporting supported by the Water Desk at the University of Colorado, Boulder.
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