Don't Run Back To Coal Again, Says Energy Body In Hormuz Crisis Report

The ETC maintains that a coordinated clean energy push could displace the equivalent of all Hormuz flows within years and reduce global oil demand by around 20% and gas demand by over 30% by 2035, offering a path to permanent resilience.

Ras Laffan LNG facility repair is expected to take 3–5 years. The ETC also outlines five win-win moves for governments to pursue a coordinated clean energy push, strengthening resilience and reducing emissions.

The report notes that new coal plants would take years to come online and would lock in future vulnerabilities, highlighting contrasts with Spain’s high renewable share (57%) and its smaller price spikes compared with gas-heavy systems.

If elevated prices persist through 2026, the world could incur an extra $1-2 trillion in gross fuel expenditure for the same amount of energy, a figure that rivals the global clean energy investment gap.

ETC projects that electric-vehicle deployment could displace around 5 million barrels per day of oil by 2030 and 9-10 mb/d by 2035, roughly half to a little more than pre-crisis Hormuz flows.

Private sector activity is accelerating the transition: Chinese solar PV exports and battery storage shipments rose, and fifty countries reported record solar PV imports amid rising demand in vulnerable regions.

India’s strategic petroleum reserves cover roughly 10 days of demand, exposing vulnerabilities in LPG, diesel, and related sectors. Authorities fast-tracked wind and storage clearances, while induction cooktop sales surged as households shifted away from LPG.

The Hormuz disruption halted about 18.4 million barrels per day of oil, around 20% of global LNG, and a third of traded fertilisers, with benchmark oil prices rising from about $70 to $90–120 per barrel and LNG above $25 per MMBtu; diesel, jet fuel, and LPG shortages began in several countries including India, Pakistan, Sri Lanka, Bangladesh, and the Philippines.

The Energy Transitions Commission published Lessons on Energy Security following the Hormuz Crisis, arguing that rushing back to coal or expanding fossil infrastructure would be costly, and that renewables and storage offer faster, cheaper resilience.

In March 2026, EU electric-vehicle registrations rose nearly 50% year-on-year, signaling growing electrification even before the crisis shapes policy.

In March 2026, Chinese solar PV exports doubled from February and battery storage exports rose 44% month-on-month. Fifty countries reported record solar PV imports, with notable surges in Hormuz-exposed nations such as India, Ethiopia, and Kenya.