A series of global shocks in recent years have triggered an exceptionally active period of energy policy making, sharpening governments' focus on energy security, resilience and affordability - and driving public spending on energy significantly higher - according to a new IEA report.
The report, State of Energy Policy 2026, provides a comprehensive, first-of-its-kind review of global energy policy changes in 2025. Drawing on the IEA's Global Energy Policies Hub - the world's most extensive public repository of energy policies - it tracks more than 6 500 policy measures across 84 countries. The report highlights changes in more than 200 areas of energy policymaking, including government spending, emergency stockholding, energy access, energy regulation and climate pledges.
Government spending on energy has more than doubled since 2019 - a period that included the disruptions of the Covid-19 pandemic and the 2022 energy crisis. Globally, annual government spending on energy exceeded $405 billion in 2025, according to the report. Even before the outbreak of the war in the Middle East this year and the major impacts on energy markets around the world, annual government spending on energy was projected to remain near 2025 levels through 2030. The bulk of public spending has been directed towards longer-term investments in energy infrastructure, advanced manufacturing, renewable energy, energy efficiency and incentives for fuel switching.
The report notes that the 2022 energy crisis linked to Russia's invasion of Ukraine offers important lessons for governments on short-term measures to shield consumers from the effect of crises. Of the roughly $220 billion spent on consumer support that year, only around a quarter was targeted at households most in need, increasing the fiscal burden of those interventions. That crisis also prompted the adoption of additional emergency response mechanisms for natural gas, where 30 countries accounting for more than 40% of natural gas imports expanded their stockholding requirements for natural gas storage obligations.
Governments are also increasingly focused on addressing new forms of risk, particularly in the concentration of critical minerals and energy technology supply chains. Around a third of the critical mineral policies tracked by the IEA have been introduced in just the past five years, including in response to a rising number of export controls on minerals key to the energy sector.
"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."
Last year marked a shift in policy momentum for energy efficiency and fuel switching regulations. While 15 countries have strengthened efficiency standards, a broader wave of regulatory rollbacks and delays, particularly for road transport, has slowed the pace of expected efficiency improvements. While intended to ease short-term compliance burdens, these changes could leave households and businesses more exposed to energy price swings in the future.
The new report emphasises that the current energy crisis, driven by the conflict in the Middle East, could trigger a new dynamic phase of policymaking, with similarities to the responses seen during the oil crises of the 1970s. The IEA will continue to track developments through the Global Energy Policies Hub, providing regular updates on how governments are navigating an increasingly complex energy landscape.
