Energy Transition, Renewables, Emissions, Carbon
May 20, 2026
ET Highlights: Hormuz crisis pushes electrification, Brussels eyes Article 6 under CBAM, Singapore carries forward unused carbon offset
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
Hormuz crisis exposes structural energy flaw, pushes electrification case: ETC
The closure of the Strait of Hormuz triggered a historic disruption to fossil fuel supplies and should accelerate clean energy deployment, with governments and markets responding to disrupted oil and liquefied natural gas flows by fast-tracking renewable electricity, electric vehicles and heat pumps rather than locking in new fossil fuel infrastructure, according to the Energy Transitions Commission.
The crisis has disrupted around 18 million b/d of oil supply and 20% of global LNG trade, or more than 110 Bcm/year, with 75% of the world's population living in fossil fuel-importing countries, the report said. If sustained, elevated prices could add $1 trillion-$2 trillion in annual energy costs globally, it said.
"This is a reminder to governments -- both in Asia and in Europe -- that as long as we have fossil fuel-based economies, we are vulnerable to another political event," ETC co-chair Adair Turner told Platts, part of S&P Global Energy, in an interview. "Four years ago, it was Russia-Ukraine. Now it's the Gulf. Who knows what the next one is."
The ETC, a global coalition of leaders from across the energy landscape committed to achieving net-zero emissions by mid-century, said fossil fuel systems were "structurally vulnerable" because of their dependency on continuous extraction, trade and transport.
Benchmark of the Week
Eur75.04/mt ($87.23/mt)
Platts-assessed, nearest December EU ETS carbon allowances May 14.
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Brussels opens door to limited use of Article 6 credits under CBAM
Companies importing carbon-intensive goods into the EU could use international carbon credits to lower their Carbon Border Adjustment Mechanism costs under draft rules published by the European Commission, provided the credits meet Paris Agreement standards and represent no more than 10% of the emissions from facilities where the goods were produced. The Commission published the draft implementing regulation on third-country carbon price recognition under CBAM, with the guidance now open for public consultation until June 10.
Australia shortlists renewable hydrogen projects for funding amid budget cuts
The Australian Renewable Energy Agency has shortlisted seven renewable hydrogen projects for the second round of the Hydrogen Headstart program, according to a government announcement, a day after spending cuts to the flagship initiative were announced. ARENA has invited the projects to submit full applications for funding from the program, which received a revised allocation of A$1 billion ($660 million) in the 2026-27 (July-June) federal budget announced on May 12, ARENA said. Renewable hydrogen is complex, capital-intensive industry and takes time, but it is a critical enabler of industrial decarbonization, particularly for hard-to-abate sectors, ARENA said.
Canadian Solar managing 'solar downturn' that has lasted 'longer than expected'
Canadian Solar is focused on key strategic markets as solar energy production continues to experience challenges, though its battery storage business is attracting greater interest. The solar downturn has lasted longer than expected, according to Shawn Qu, Canadian Solar's executive chairman and chief technology officer. During the company's first-quarter earnings call, Qu said the company has refocused on strategic markets, noting the creation of CS PowerTech in December 2025, which is helping it reshore US manufacturing. Canadian Solar shipped 2.5 gigawatts of solar modules and 2.1 gigawatt-hours of storage capacity in the first quarter, above guidance.
S&P Global Energy Core
Singapore allows carbon tax companies to roll over 2025 offset quota
Singapore will allow companies liable for the carbon tax to carry forward their unused International Carbon Credit offset quota from emissions years 2025 to 2026, the National Environment Agency and Ministry of Sustainability and the Environment said. The one-year rollover is intended as a "transitional measure" to give international carbon markets under Article 6 of the Paris Agreement more time to mature and for more ICCs to become available, according to the statement. The move is largely anticipated by the market, though many sources expect the official announcement to be made in June, as in the previous year.
Major UK construction project replaces diesel with hydrogen at no additional cost
The Lower Thames Crossing infrastructure project in the UK is on target to slash CO2 emissions during the construction phase by replacing diesel with battery-electric and hydrogen fuel-cell equipment, at no additional overall cost. The company will replace a total of 63 million liters of diesel via direct electrification, hydrogen fuel cell vehicles on the construction site and biofuels, the group’s Supply Chain and Sustainability Director Katharina Ferguson said at a recent event at the Port of Tilbury, close to the construction site. The project has a contract to purchase 2,500 metric tons of renewable hydrogen from producer GeoPura over five years, displacing over 12 million liters of diesel per year.
Solar generation likely to top coal output in ERCOT for first time in 2026: EIA
Annual power generation from utility-scale solar resources will surpass coal-fired generation in the Electric Reliability Council of Texas market for the first time in 2026, the US Energy Information Administration forecasts, though an analysis of ERCOT data indicates that this occurred already the year before. The EIA, in its May Short-Term Energy Outlook, forecast that solar generation in ERCOT would reach roughly 78 billion kilowatt-hours this year, compared to about 60 billion kWh for coal-fired output. By comparison, ERCOT’s solar generation in 2025 was around 57.1 billion kWh while coal produced nearly 60 billion kWh, according to EIA’s report.