Iranian Oil Shock Will Hit the Global South First

In response to a question about who will pay the price for oil shortages resulting from the blockade of the Strait of Hormuz, an analyst said the following:

"We are in the countries that will attract the most supplies because we're willing to pay the highest prices. But other lower-income countries in the world, it's not going to be a price issue for them.”

In other words, everyday life will be disproportionately impacted in Global South countries across India and Africa, which might simply not have the means to purchase energy at any price—potentially grinding their economies to a halt at immense human cost.

Countries that have invested in renewables will be best equipped to weather this storm. For example, Ethiopia recently banned combustion vehicles to reduce oil import dependence, a move that is likely to provide both material benefits and political stability for the nation.

But many countries cannot afford a climate transition on their own, and capital availability is likely to dry up amid the latest geopolitical shocks.

That's where Renewables.org can help. When we crowdfund Global South solar projects, funds are lent to regional solar developers who use them to build solar capacity across India and Africa. This has the dual effect of building economic resilience against shocks like the one we are experiencing now—and generating more carbon avoidance than any other product we've analyzed.

Invest with Renewables.org

A $25 zero-interest contribution on Renewables.org creates 530 pounds of CO₂ avoidance, and the funds are repaidin monthly installments over five years. Together, we can help ensure the current US-Israel-Iran conflict does not slow the Global South’s transition to sustainable technologies.