Fossil fuels drive cost crisis

As global energy markets are shaken by conflict and instability, rising prices for fuel, food and basic goods are eroding household purchasing power and straining economies everywhere.The impacts are reverberating around the world.War in the Middle East has exposed a brutal truth: fossil fuel dependency undermines countries’ sovereignty and security, placing food prices, household budgets, business costs and entire economies at the mercy of geopolitical shocks. In a world of increasingly volatile power dynamics, the costs of reliance on fossil fuels continue to rise.The latest conflict has unleashed what the International Energy Agency has described as the greatest global energy security threat in history, constricting oil and gas supplies and driving prices higher. Inflation inevitably follows, increasing costs for families and businesses of all sizes.These pressures are being felt across regions.ChallengesIn Africa, many countries are grappling with rising food and fuel prices driven by global energy shocks, placing additional strain on household budgets, public finances and already stretched social safety nets.The World Food Programme warns that these shocks could push global hunger to record levels this year.In Namibia, higher input costs for food, fuel and transport are compounding existing pressures on households and small businesses, particularly in rural areas and among lower-income families.Some argue that the appropriate response to the current crisis is to slow the shift to renewable energy and instead deepen reliance on fossil fuels. This approach defies both economic logic and common sense.With geopolitical instability persisting, energy price shocks are likely to recur. Continued dependence on fossil fuels would leave countries repeatedly exposed to these disruptions.It would also accelerate global warming, intensifying climate-related disasters such as severe storms, droughts, fires and floods.Across Africa, these impacts are already disrupting agriculture, damaging infrastructure and forcing governments to divert scarce resources from long-term development to emergency response and recovery.In Namibia, recurring climate shocks are placing increasing pressure on food systems, water availability and livelihoods, particularly in marginalised and climate-exposed communities. These pressures will intensify if temperatures continue to rise.SubsidiesAt the same time, fossil fuels continue to receive substantial global subsidies, reinforcing the very systems driving both economic volatility and climate instability.There is, however, a clear and viable solution.Accelerating the transition to clean energy systems, where renewable sources provide power supported by modern grids and storage, and clean technologies replace polluting alternatives, addresses both the climate crisis and the cost pressures linked to fossil fuels.Solar and wind energy are not dependent on vulnerable shipping routes. Clean energy allows countries to strengthen economic resilience and energy security, while also creating jobs, reducing pollution, improving public health and lowering costs. Renewable power is now among the most affordable energy sources available.In Namibia, investments in renewable energy and green hydrogen are already creating opportunities for employment, economic diversification and greater energy independence.Many countries are beginning to realise these benefits and strengthen their resilience to climate shocks. However, greater support is required. More than US$2 trillion was invested in clean energy last year, double the amount directed towards fossil fuels, yet only a small share reached the developing economies that need it most.ImbalanceThis imbalance must be addressed. Developed countries, together with international financial institutions, have a clear incentive to ensure that affordable financing is accessible to developing nations for climate action. A truly global transition benefits all economies.In an interconnected world, climate related disruptions to supply chains are increasingly driving inflation across countries. Through international cooperation, however, nations are working towards more stable, sustainable alternatives.At UN Climate Change, this cooperation is actively supported. Annual COP conferences have contributed to significant progress, including reducing projected global temperature increases, transforming energy markets and strengthening resilience. However, progress must accelerate, with a strong focus on ensuring a just transition for economies and communities that have historically depended on fossil fuels.The faster countries act, the greater the benefits. Climate action must now translate into tangible outcomes that improve lives. Recent commitments, including significant investments in energy infrastructure, signal growing momentum, with further progress expected at upcoming global climate forums.Current global instability reinforces the urgency of this transition. For Namibia, advancing clean energy is not only an environmental necessity but also a strategic economic opportunity. Climate cooperation offers a pathway to stability, resilience and sustainable growth.*Simon Stiell is the UN Climate Chief.

Fossil fuels drive cost crisis

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Republikein 2026-06-30

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Fossil fuels drive cost crisis

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