Fossil fuels are driving a global cost crisis, according to the UN climate chief. Geopolitical instability in the Middle East has notably increased energy prices and global food insecurity. Ghana faces significant economic pressures due to its dependence on these fuels.
The current Middle East conflict has triggered what the International Energy Agency calls the "greatest global energy security threat in history." This situation led to soaring oil and gas prices. The World Bank Group confirms that global food prices are sharply rising in 2026. Fertilizer costs have jumped 31% and energy prices surged 24%.
These price increases create immense pressure on agricultural production and household food bills worldwide. Import-dependent regions, including Africa and Ghana, face a higher risk of food insecurity. Disruptions in the Strait of Hormuz directly impact oil, gas, and fertilizer supplies to these nations.
Simon Stiell, Executive-Secretary of UN Climate Change, highlights the brutal truth of fossil fuel dependency. He states it removes countries' sovereignty and security. This dependency puts food prices, household budgets, business bottom lines, and entire economies at risk from geopolitical shocks. He argues that continuing to rely on fossil fuels leaves countries vulnerable to repeated crises.
Ghana’s energy sector relies heavily on fossil fuels, specifically crude oil and natural gas. About 70% of Ghana’s electricity comes from thermal power generation. Hydropower accounts for 25% and solar power for 5%. However, hydropower is at risk due to rising temperatures, droughts, and erratic rainfall, affecting plants like Akosombo, Kpong, and Bui.
As Ghana industrializes and its population grows, electricity demand has doubled. This places pressure on the national grid and ensures continued reliance on thermal energy. Such dependency makes Ghana’s energy sector vulnerable to international crises, like those in the Middle East. Climate disasters, exacerbated by global warming, also pose a significant threat. These include mega-storms, droughts, and floods that damage economies, as seen in recent events in Nigeria and Mozambique.
The solution involves accelerating the shift to clean energy systems. Renewable sources like sunlight and wind offer independence from vulnerable shipping lanes. Clean energy technologies, such as electric vehicles, can replace polluting alternatives. Ghana launched a National Electric Vehicle Policy in 2023. This policy aims for 35% EV penetration by 2035 and targets phasing out petrol/diesel vehicle imports by 2045. Last year, over USD2 trillion flowed into clean energy globally. However, very little reached vulnerable developing economies. International financial institutions and richer countries must increase affordable climate finance to these nations. This global shift benefits everyone by stabilizing supply chains and mitigating inflation drivers.