Global energy and trade disruption pushing millions towards poverty
The warnings came during a special meeting of the UN Economic and Social Council (ECOSOC) on Friday focused on safeguarding energy and trade flows amid
The warnings came during a special meeting of the UN Economic and Social Council (ECOSOC) on Friday focused on safeguarding energy and trade flows amid continuing volatility in global fuel markets, shipping routes and critical supply chains. “This is not only an energy challenge. It is a development challenge. It is a financing challenge,” ECOSOC President Lok Bahadur Thapa told delegates at UN Headquarters in New York. “Above all, it is a test of our collective ability to deliver on the promise of the 2030 Agenda.” Adopted in 2015 by all UN Member States, that blueprint for achieving broad-based sustainable development aims to end poverty, reduce inequality and protect the planet by 2030. Skyrocketing fuel costs Rising fuel and transport costs, trade disruptions and tightening financial conditions are intensifying pressures on developing countries, particularly those already burdened by high debt and dependent on imported food and energy. According to UN estimates, global fuel prices are now more than double the 2025 average, while fertilizer prices could remain 15 to 20 per cent higher through the first half of 2026 if disruptions continue.
The impacts are already being felt in households around the world through rising food prices and higher living costs. “More than 32 million additional people are at risk of being pushed into poverty globally as a result of the combined shock of rising energy prices, higher food costs and weakening economic growth,” Mr. Thapa said. UN Photo/Eskinder Debebe Women, young people also hard-hit Women, children and young people are among those most affected by rising food and energy costs, particularly in countries where households spend a large share of their income on basic necessities. UN Under-Secretary-General for Economic and Social Affairs Li Junhua warned that instability in energy and supply flows was straining an already fragile global economy, fuelling inflation and reducing governments’ ability to sustain investments in critical sectors. “Safeguarding energy and supply flows is therefore not just an economic imperative; it is a fundamental requirement for achieving inclusive and sustainable development,” he said. Li outlined four priorities for action: keeping energy and commodity markets open and predictable; scaling up affordable financing for developing countries; investing in resilient and sustainable energy systems; and accelerating progress toward Sustainable Development Goal 7 on access to affordable and reliable energy.
‘Energy is food, medicine and dignity’ Offering a stark illustration of the impact on small island economies, Prime Minister Mia Mottley of Barbados said the effects of global instability are felt most acutely in small island and developing economies heavily dependent on imported fuel and food. “Energy is just never energy,” she said. “It is medicine, it is food, it is learning, it is work. It is dignity in a household and sovereignty in a nation.” Referring to the ripple effects of instability in the Middle East, Ms. Mottley said global crises travel rapidly through shipping lanes, fuel markets and public budgets before reaching ordinary families. “It arrives as the delayed medical shipment. It arrives in the higher bus fare. It arrives in the smaller plate,” she said. Barbados imports more than 85 per cent of its energy needs, while the wider Caribbean imports more than 80 per cent of its food. “Small size does not soften the shock; it often makes it faster and more expensive,” she added.
The BriefWire