Costs of energy transition likely to go up over short term due to Iran war, says OCBC CSO 

[SINGAPORE] Companies implementing their low-carbon transition plans are likely to face higher costs over the short term due to the Iran war.

Hence, they need to be more strategic when prioritising their decarbonisation investments and capital expenditure, even as they manage the uncertainties and volatility of the current geopolitical environment, said OCBC chief sustainability officer Mike Ng. 

While sustainability and the energy transition are increasingly being viewed as critical to strengthening energy security and resilience – after having taken a backseat following the return of US President Donald Trump to power last year – the Iran war has nonetheless created short-term headwinds for the low-carbon transition.