The Middle East conflict: why carbon markets are not yet disrupted

The Middle East conflict has provoked one of the most severe energy crises of recent memory. Many critical unknowns remain, primarily the duration of the conflict and how long the Strait of Hormuz will be closed. What is clear, though, is that despite the short-term disruptions, the longer-term case for decarbonisation remains intact. This insight covers what could transpire in the medium term and what lies ahead in the long term in four key areas – carbon policies, compliance prices, carbon offset markets and CCUS.