With global energy flows disrupted, countries prioritize short-term needs over decarbonization, highlighting the need for climate policies that realign incentives.

<p>As the closure of the Strait of Hormuz continues to disrupt global oil and gas flows, countries are increasingly focusing on short-term energy priorities to the detriment of long-term decarbonization goals. In such a context, the difficult task of designing climate policies that realign incentives takes on new importance.</p>