Governments Churn Out More Policy, Spend More to Manage Energy Security, Says IEA

-- Government spending on energy around the globe has more than doubled since 2019, the International Energy said in a report on Friday, noting that energy-related legislative activity has also intensified in that period.

Most new energy spending has been directed to long-term investments in infrastructure, advanced manufacturing, renewable energy, energy efficiency and incentives for fuel switching, the State of Energy Policy report said.

The IEA said more intense energy-related activity reflects a series of global shocks in recent years including the as-yet unresolved Middle East crisis, and a sharper focus on energy security and affordability.

The report says that the arrival of a new energy crisis last month could see governments double-down further on energy policy, as was the case during the crises of the 1970s.

Based on data from the IEA's Global Energy Policies Hub that tracks 6,500 policy measures in 84 countries, the report highlighted changes in more than 200 areas of energy policy in 2025.

The report notes that governments have stepped up their focus on new types of risk, chiefly concentration of critical minerals and energy technology supply chains. About a third of critical mineral policies the IEA tracks were introduced in the last five years with export controls prominent among them.

"Energy policy is being shaped by a complex and evolving set of global constraints," said Laura Cozzi, IEA Director of Sustainability, Technology and Outlooks.

"Governments are acting to protect consumers, strengthen resilience and secure supplies, but they must also ensure that short-term responses do not come at the expense of long-term energy objectives. Choices made today may well have lasting implications for the future of energy systems."

While some countries have stepped up efforts in energy efficiency and fuel switching, backsliding by others has been even more significant, in particular in road transport.

While easing compliance burdens, this could leave households and businesses exposed to energy price shocks for longer, the IEA said.