Clean energy stocks gain in value during Iran war

This briefing by Zero Carbon Analytics examines how the US-Israel invasion of Iran on 28 February 2026 triggered an energy crisis that accelerated the transition to clean energy. It analyzes the outperformance of clean energy equity funds over oil and gas funds, shifts in investor sentiment regarding the necessity of natural gas, and the impact of regional cost-of-capital differences on renewable energy investments.

• The US-Israel invasion of Iran on 28 February 2026 led 23 countries across five continents to announce clean energy and electrification measures by 1 May, citing energy security concerns.
• Clean energy exchange-traded funds (ETFs) incorporated in the US outperformed traditional energy ETFs as of early May 2026. Renewable energy ETFs saw over USD 3 billion in inflows in April 2026, the highest monthly net inflow since January 2021.
• Norges Bank Investment Management, the world's largest single asset owner, announced on 5 May 2026 that it is on track to deploy 1% of its assets into unlisted renewable energy infrastructure by 2030. ZCA analysis indicates this represents at least USD 12.6 billion in new investment based on a fund value of USD 2.1 trillion at the end of 2025.
• Investor sentiment toward short-term renewable returns is rising; 14% of Climate Opinion Research Exchange (CORE) survey respondents ranked renewables top for one-year returns in March 2026, up from 9% in March 2025.
• The perceived necessity of natural gas for the transition from coal to clean energy has declined globally, falling from 62% in March 2025 to 54% in March 2026. This decline was most significant in Asia, where agreement dropped to 48%, the lowest level since polling began.
• There is a significant regional disparity in the cost of capital for renewables; in January 2026, the estimated cost was 12.95% in emerging markets, including Asia, compared to 5.02% in Europe.
• Specific national policy actions following the crisis include the UK introducing rules in late March requiring heat pumps and solar panels in all new homes in England, Indonesia's commitment to deploy 100 GW of solar within three years, and the Philippines fast-tracking 1.47 GW of renewable energy and storage by the end of April.

APA

Kong, A. (2026). Clean energy stocks gain in value during Iran war. Zero Carbon Analytics. https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/

Chicago

Kong, Amy. Clean energy stocks gain in value during Iran war. Zero Carbon Analytics, 2026. https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/.

Wikipedia

{{cite report |last1=Kong |first1=Amy |title=Clean energy stocks gain in value during Iran war |publisher=Zero Carbon Analytics |date=12 May 2026 |url=https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kong2026clean, author = {Kong, Amy}, title = {{Clean energy stocks gain in value during Iran war}}, institution = {Zero Carbon Analytics}, year = {2026}, month = may, url = {https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }