TORONTO — Countries across Asia and Europe are accelerating their shift to clean energy—a transition hastened by the war in Iran. But with the Ottawa–Alberta memorandum of understanding on climate and energy policy more than a month overdue, Canada is risking locking in policy signals that leave it out of step with this rapidly restructuring global energy economy, warn Clean Energy Canada’s Rachel Doran and other climate and clean energy experts.
In a joint letter sent today, the leaders of the Pembina Institute, Clean Energy Canada, Climate Action Network, Environmental Defence, Equiterre, and International Institute for Sustainable Development urge Prime Minister Mark Carney to finalize key elements of the agreement, warning that failure to do so risks a “consequential miscalculation” that would place too great a focus on the oil and gas industry at the expense of clean growth sectors.
“While countries across Asia and Europe engage in short-term energy rationing and longer-term restructuring of their economies away from oil and gas dependence and towards domestically produced clean electricity, here in Canada, we are stuck in an unhelpful feedback loop of discourse about the need for more oil and gas infrastructure and the loosening of environmental regulations on multi-billion dollar oil and gas companies,” reads the letter.
“Nowhere is this more evident than in the delay to the promised resolution of the Alberta-federal MOU on energy and climate policies.”
The letter urges specific outcomes on four key aspects of the MOU: industrial carbon pricing, clean electricity development, and methane rules for oil and gas producers. It refers to these, and the MOU more broadly, as the prime minister’s “most consequential opportunity” to turn “words into action” on building a strong, future-proofed Canadian economy.
KEY FACTS ON THE IRAN WAR AND ENERGY TRANSITION
- Several countries, including the U.S., the U.K., Australia, South Korea, Germany, and Malaysia, have reported spiking sales or signs of elevated consumer interest in EVs since the war began. The surge has been particularly marked in Asia, where consumers are most exposed to the current oil supply shock.
- 1.75 million electric vehicles were sold globally in March 2026, a 66% increase on the previous month.
- Energy rationing is underway across the world, with the International Energy Agency tracking more than 40 countries where governments are urging citizens to take steps to conserve energy, such as limiting use of air conditioning in tropical climates or minimizing daily commutes.
- There are signs of countries rethinking previously approved oil and gas projects in light of the crisis. For example, plans for the construction of Vietnam’s largest-ever LNG import project are on pause, with investors citing the Iran war’s impact on global LNG supplies as a reason to consider switching to a renewable energy project instead.