IEA Conference in Montreal Delivers Energy Efficiency Pledge as Hormuz Crisis Reshapes Global Markets

COP31 Presidency's Action Agenda: Electrification, Buildings, and Waste

A significant parallel development was the formal launch of the COP31 Presidency's Action Agenda by COP31 President-Designate Murat Kurum in June 2026 . Hosted by Türkiye in Antalya in November 2026, the COP31 summit set three headline goals :

• Electrification target: Raise the share of global final energy demand met by electricity from just over 20% today to 35% by 2035 ("35% by 2035") .
• Buildings / Resilient Cities target: Reduce energy consumption intensity in the building sector by at least 25% by 2035 . The COP31 Presidency commissioned the IEA to map out pathways and analyze the benefits of this target .
• Waste target: Halve the growth in global waste generation by 2035 .

Birol expressed hope that COP parties in Antalya would back the electrification target, calling it a critical step for energy security and emissions reduction .

Reactions from Key Leaders

• Fatih Birol (IEA Executive Director): Birol described Canada as having a "once in a lifetime opportunity" to become an energy superpower, especially given the disruption of Gulf oil supplies caused by the Strait of Hormuz crisis . He noted that Canada is well-positioned to supply energy to markets that have lost reliable access, and that the IEA is working to identify best practices for energy efficiency that can be shared globally .
• Tim Hodgson (Canada's Energy Minister): Hodgson stated that "energy efficiency is a cornerstone of Canada's ambitious clean energy agenda" ahead of the conference . He highlighted that hosting the conference in North America for the first time was a significant milestone for Canada's leadership in the energy transition .
• Julie Dabrusin (Canada's Environment Minister): Dabrusin co-hosted the conference and emphasized Canada's whole-of-government approach linking energy efficiency, climate change, and nature protection .

The Strait of Hormuz Crisis: A Defining Backdrop

The Montreal conference took place amidst the most severe global energy supply disruption in decades. On February 28, 2026, the United States and Israel launched an air war against Iran, after which Iran effectively blocked shipping traffic through the Strait of Hormuz, the world's most important oil transit chokepoint . The impact was immediate and severe:

• Scale of disruption: More than 11 million barrels per day of Gulf crude and condensate production was cut off . Middle East oil production dropped by an estimated 7–10 million barrels per day . The IEA called this the most severe energy supply disruption since the 1970s .
• Market impact: Oil prices rose faster than during any previous conflict, with Brent crude surpassing $100 per barrel on March 8 and peaking at $126 per barrel . Insurance became unavailable or prohibitively expensive for vessels transiting the strait, effectively closing it to commercial traffic .
• Aramco warning: Saudi Aramco's CEO warned that the Hormuz disruption represents the industry's "greatest crisis" and that consequences could be "catastrophic" if the closure continues .

Birol explicitly linked the crisis to Canada's potential, noting that the disruption of reliable Gulf oil supplies creates a strategic opening for Canadian energy exports . The conference's emphasis on energy efficiency was also framed as a crucial response to the energy security and affordability pressures caused by the crisis .

Looking Ahead

The Montreal conference reinforced that energy efficiency is a central tool for addressing both climate goals and immediate energy security challenges. As the world grapples with the fallout from the Hormuz crisis, the commitments made in Montreal and the targets set by the COP31 Presidency will be tested by the need for rapid, concrete action. The upcoming COP31 summit in Antalya will be a key moment to translate these pledges into binding international agreements.