The Role of Government Policies in the Energy Industry
Former U.S. President Joe Biden is facing a worsening health situation after his son Hunter Biden said the cancer has spread to his bones and described the disease as "very painful" and "very debilitating."
Governments have rarely been so active in energy. Them spending on energy has significantly increased, exceeding $405 billion in 2025, driven by over 6,500 policy measures in 84 countries, emphasizing energy security, resilience, and affordability in decision-making, according to the IEA. (IEA)
Policy adjustments in 2025 included repealing U.S. energy tax credits, ending European recovery funding, and cutting Chinese renewables subsidies, leading to a 25% reduction in anticipated annual government energy spending through 2030.
Does more government support always help consumers?
Not necessarily, targeting is crucial; during the 2022 energy crisis, only about 25% of $220 billion in consumer support reached the neediest households, raising fiscal burdens. Governments face new risks, with a third of IEA-tracked critical mineral policies introduced in the last five years.
IEA director Laura Cozzi summed up the balancing act when she said that "Governments are acting to protect consumers, strengthen resilience and secure supplies", while cautioning that short-term responses should not undermine long-term goals.
Could the current crisis change energy policy for good?
Possibly, as the Middle East crisis may prompt new policymaking akin to the 1970s oil crises. While 15 countries enhanced efficiency standards in 2025, potential rollbacks and delays could increase vulnerability to price fluctuations. Upcoming policies will significantly impact energy costs and supply security over the next decade.
Videos
