The spiking price of oil helped increase global sales of electric cars in the second quarter of 2026 despite total car sales falling, a new International Energy Agency (IEA) report shows.

The IEA’s latest update on the market for electric cars said sales increased by 4% in the second quarter, after the war between the US, Israel and Iran disrupted oil supplies around the world and caused oil prices to jump at the end of February.

The increase in electric car sales was achieved despite customers buying fewer vehicles in total due to economic problems and, in China, a reduction in government subsidies for cheap cars. Total car sales fell 5% globally in the first half of 2026.

“While a lag in consumer responses and policy implementation means the full effects will take time to materialise, the crisis has clearly reinforced the case for [electric vehicles] as a way to address energy security and fuel cost concerns,” the IEA’s report said.

The IEA predicts that sales of electric cars will speed up in the second half of the year, increasing by 10% for 2026 in total compared to 2025. Electric car sales will be 29% of total car sales over the full year, it forecasts, up from 24% in the first half.

The IEA expects sales of fossil fuel-reliant internal combustion engine vehicles to continue declining, as they have been doing for a decade because of economic shocks like the COVID-19 pandemic and, since around 2020, the rise of electric cars.

Road transport – which also includes two- and three-wheeled vehicles like scooters and rickshaws – currently accounts for half of global oil use. The oil industry has been trying to expand markets in newer, growing sectors like plastic to replace its declining business in petrol and diesel for road transport.

Pro-EV policies

As well as the higher oil price, the IEA said this year’s electric car boom is being driven in some countries – particularly in Europe and Southeast Asia – by government policies that have been put in place since the Iran war blocked shipping of oil and other commodities through the Strait of Hormuz.

It highlighted the Netherlands and Ireland, which have both announced subsidies for scrapping old internal combustion engine cars and replacing them with electric ones.

Australia, Spain, Chile, Vietnam and the US state of California have introduced, or are introducing, tax benefits for electric cars.

Australia, the UK and Hungary have announced funding or support for charging infrastructure, while Cambodia, Brazil and Kenya have reduced taxes on imports of electric vehicles.

Growth in electric car sales was particularly strong in Europe, Brazil, Australia, India, South Korea, Vietnam, Colombia, South Africa and New Zealand.

On the other hand, electric car sales fell 16% in China – the world’s biggest electric car-buying country – in the second quarter. This was driven by a decline in total car sales, which was more extreme for internal combustion engine cars than electric ones.

In the US, electric car sales rose 20% in the second quarter compared with the first quarter of 2026. But this was about 25% less than in the same period of 2025, when Americans were taking advantage of expiring Biden-era federal tax credits.

These statistics back up Climate Home News’ reporting from the ground since the oil price spiked. As we reported from Yemen in May, the IEA data shows Chinese electric car companies are having success in the Middle East.

And as our correspondents found in Nepal and Bangladesh, there has been a surge of interest in electric vehicles across Asian countries outside of China. Yet while EV adoption in Nepal has been enabled by investments in charging and import subsidies, drivers in Bangladesh have been put off by a lack of chargers and high prices for electric two-wheelers.

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Hormuz crisis speeds up transition to electric cars, IEA data shows

Newly-released internal documents from Shell suggest that a desire to avoid incurring the costs of shutting down its oil pipelines and cleaning up spills from them was part of the energy giant’s motivation in selling off its onshore oil assets in the Niger Delta.

The company has been accused by campaigners of cutting and running by selling its controversial oil infrastructure to African firms without the resources to deal with the pollution or decommission the pipelines, leaving Nigeria’s oil-rich southern region worse off.

Climate Home News has previously revealed that highly-polluting gas flaring in the Niger Delta has soared since the sell-off, while Shell avoids responsibility and continues to profit from the oil assets it sold.

The documents – which were cited in UK court proceedings and featured in a new Amnesty International report released on Wednesday – show that in June 2013 a Shell presentation to a policy forum on Nigeria considered options for “handling potential liabilities related to [Shell] past oil spills”.

The presentation identified 375 square kilometres of mangrove forests – an area the size of a large city – which had been affected by oil spills and asked “do we have the appetite to take on this open-ended problem?”

The next year, in 2014, Shell’s then CEO Ben van Beurden was warned by colleagues that closing down the company’s pipelines in the south of Nigeria would cost billions of dollars and take several decades.

The year after that, in 2015, Shell began to divest its Niger Delta oil businesses by selling its stake in a pipeline to Nigerian oil company Aiteo for $1.7 billion.

“Well aware” of the costs

At the time of this divestment, Amnesty International’s report says Shell “appears to have been well aware of the massive costs of decommissioning the entirety of its aged and decaying infrastructure. Rather than cover these costs, it appears that Shell decided to sell.”

The process continued, with Shell selling all its remaining onshore oil operations to a local consortium called Renaissance. At the time, Shell said its divestment “aligns with its intent to simplify its presence in Nigeria” and focus investment on offshore oil.

UN experts accuse top oil firms of rights violations over Nigerian asset sales

Despite calls for the sale to be blocked, Nigeria’s oil regulator gave it fast-track approval. Mark Dummett, deputy director and head of business and human rights at Amnesty International, told Climate Home News that this allowed Shell to “cut and run”, while communities remained trapped with polluted land, poisoned water and no justice.

Some of the affected Niger Delta communities have since taken the oil giant to local and international courts. In 2015, the Ogale and Bille communities filed a UK legal action against Shell and its Nigerian subsidiary over serious oil pollution which is scheduled to be heard in March 2027.

Shell had not responded to a Climate Home News request for comment by the time of publication. But in a statement included in the Amnesty report, the company rejected “the characterisation and portrayal of Shell” presented by the rights group findings, which it said did not reflect the “challenging operating environment in the Niger Delta at the time, including large-scale oil theft, sabotage and illegal refining carried out by organised criminal gangs”.

For blighted Niger Delta communities, oil spill clean-ups are another broken promise

The oil major added that it is “committed to honesty, integrity and respect for people, and to conducting business in an ethical and transparent manner”, noting that it had worked with Nigerian authorities, the state-owned partner and communities to clean up spills. Decontamination and restoration efforts continue in the delta under a government-led programme.

Olanrewaju Suraju, chairman of the Nigeria-based HEDA Resource Centre, an environmental justice NGO which partnered with Amnesty on the report, criticised Shell for taking oil and profits from the region and leaving pollution behind. “Communities in the Niger Delta deserve truth, justice, clean-up and full remedy,” he said in a statement.

The post “Do we have the appetite?” – Shell’s fear of Niger Delta clean-up costs revealed appeared first on Climate Home News.

“Do we have the appetite?” – Shell’s fear of Niger Delta clean-up costs revealed

A UN effort to keep the threatened 1.5C warming limit alive is exposing deep divisions over the future of fossil fuels, pitting climate-vulnerable nations seeking a faster move away from coal, oil and gas against major emerging economies and producers that oppose targeting particular energy sources.

As countries weigh in on the “Belém Mission to 1.5”, a new process launched at COP30 last year to address the global shortfall in climate ambition, submissions show that small island nations and least developed countries (LDCs) want the initiative to help speed up a shift away from fossil fuels. Their calls for a focus on emissions-cutting measures in the energy sector are supported by the EU and the UK.

But the “like-minded developing countries” (LMDC) bloc – which includes China, India – and Arab states led by Saudi Arabia have warned against singling out specific energy sources or using the mission to assess how individual countries are performing on emissions cuts. Instead, they want its scope narrowed to identifying primarily what rich countries should do to cut their own emissions and provide more climate cash to developing nations.

Keeping 1.5C “within reach”

The split hints at a fight to come at COP31 in November over what the work programme’s findings should say and how much weight they should carry in the summit’s outcome.

Governments launched the Belém Mission to 1.5 at last year’s UN climate summit in the Brazilian Amazon city, after the latest round of national climate plans left the world set to shoot past the Paris Agreement temperature goals. Full implementation of current pledges is expected to limit global warming to only around 2.3-2.5 C by 2100, according to the UN. 

Comment: The case for making polluters pay has moved into the mainstream

The current and two preceding COP presidencies – Türkiye, Brazil and Azerbaijan – are gathering views from governments on how to raise the ambition of national climate plans (NDCs) and adaptation plans (NAPs).

The initiative will culminate in a report at COP31 outlining priority actions for keeping the 1.5C goal “within reach”. But the proposals submitted by individual governments and negotiating blocs representing nearly four-fifths of all countries point to wildly diverging visions of what the Belém Mission should achieve, especially on the transition away from fossil fuels. 

Tracking COP28 commitments

The Marshall Islands has proposed an ambitious package of concrete actions that would enable deep emissions reductions, led by a global commitment to build no new oil, coal and gas infrastructure. Together with its fellow Pacific island of Vanuatu, it also calls for a formal process to monitor progress towards the COP28 energy commitments, map fossil fuel subsidies and help countries phase them out.

The EU also said in its submission that the Mission to 1.5C is “well placed” to provide updates on how countries’ national climate plans have incorporated the COP28 agreement, including the commitment to accelerate a transition from fossil fuels in energy systems.

Countries wanting to build on the COP28 Dubai agreement have struggled to find a dedicated space for those discussions in the face of opposition from fossil fuel producers and big emerging economies.

The COP28 outcomes in response to the first stocktake of global climate action represent “one package… and not a pick-and-choose menu”, the European Commission emphasised in a thinly veiled reference to comments made by the Saudi energy minister in 2024 that the Dubai deal was an “à la carte menu” allowing nations to choose their own priority. 

Push to boost NDC ambition

The Alliance of Small Island States (AOSIS) also advocated in its submission for “high-level approaches” towards developed countries and other major emitters ahead of COP31 to spur them to produce updated NDCs with additional emissions-cutting measures. 

Vanuatu called on the COP presidencies overseeing the Mission to 1.5C to “exhibit leadership” by taking steps at home to phase out fossil fuels and reduce their “inefficient” fossil fuel subsidies.

Azerbaijan and Türkiye continue to rely heavily on fossil fuels in their energy systems, while Azerbaijan and Brazil remain significant oil and gas producers with plans to expand output.

In its submission, the LDC group of the world’s poorest nations says the failure to align global climate commitments with a pathway to keep warming under 1.5C is driven primarily by insufficient ambition from major emitters.

The Mission to 1.5C should focus its efforts on the “highest-impact” and “most feasible” solutions to curb emissions such as phasing out fossil fuels, it added.

Both the island nations and the LDCs, as well as the African group of nations, stress that significantly scaling up financial resources, and making it easier to access them, are necessary steps to enable the global energy transition.

Focus on “emissions”, not energy sources

Fossil fuel producers and several large developing economies, however, argue that the mission risks straying beyond its mandate if it singles out particular fuels or evaluates countries’ climate plans.

The Arab group, which is led by Saudi Arabia and includes the UAE, Qatar and Egypt, wrote that it should maintain a focus on “emissions management” rather than targeting specific sectors or energy sources.

Their submission says investments in fossil fuels “must increase” both to better manage the emissions associated with their production and to meet growing energy demand.

The LMDCs, a negotiating bloc that includes China and India, similarly argue that climate action should address emissions regardless of how they are produced, warning that energy sources should not be traded off against the need for growth. “Poverty eradication and sustainable development remain a key challenge for developing countries, which cannot be compromised in the name of 1.5°C,” the group’s submission says.

No “parallel” processes

For both Arab states and LMDCs, the mission’s primary goal should be to identify how rich countries that are historically responsible for the bulk of emissions can be required to further cut their greenhouse gases and channel more money to developing countries. 

Both groups also caution against allowing the initiative to evolve into what they describe as a “parallel process” that could assess countries’ climate plans or create new expectations for what developing countries should do. Instead, they argue, it should simply produce a report identifying options for international cooperation.

The two sides disagree just as sharply on what should happen to the mission’s report once it lands. AOSIS and the LDC group explicitly want its findings carried forward into the COP31 outcome decision text and used to inform future negotiating rounds. The LMDC bloc, on the other hand, wants a guarantee that the report will not be used to support other processes.

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UN bid to keep 1.5C alive exposes deepening divisions over fossil fuels