Global Energy Crisis Threatens Millions with Poverty

Recent disruptions to energy supplies and global supply chains have reverberated across development and humanitarian sectors, including relief efforts in Myanmar, where millions remain in need of assistance.

Disruptions to global energy supplies and trade corridors are driving up the cost of food, transport and essential goods worldwide, slowing economic growth and increasing pressure on vulnerable households and debt-strapped developing countries.

The warning came during a special meeting of the United Nations Economic and Social Council (ECOSOC) on Friday, which 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,” he added.

Adopted in 2015 by all UN member states, the 2030 Agenda aims to end poverty, reduce inequality and protect the planet through sustainable development goals.

Rising Fuel and Food Costs

Rising fuel and transport costs, trade disruptions and tightening financial conditions are intensifying pressure on developing countries, particularly those heavily 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% higher through the first half of 2026 if disruptions continue.

The impacts are already being felt worldwide through rising food prices and increasing living costs.

Mr. Thapa warned that more than 32 million additional people globally are at risk of falling into poverty because of rising energy prices, higher food costs and weakening economic growth.

Women and Young People Hit Hardest

Women, children and young people are among those most affected by rising food and energy costs, especially 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 said instability in energy and supply chains is placing additional strain on an already fragile global economy, fuelling inflation and limiting governments’ ability to invest 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, expanding affordable financing for developing countries, investing in resilient and sustainable energy systems and accelerating progress towards universal access to affordable and reliable energy.

‘Energy Is Food and Dignity’

Prime Minister Mia Mottley of Barbados highlighted the severe impact of global instability on small island 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, she said global crises rapidly spread through shipping routes, fuel markets and public finances before affecting 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% of its energy needs, while the wider Caribbean region imports more than 80% of its food.

“Small size does not soften the shock; it often makes it faster and more expensive,” she added.

Call for Global Cooperation

Mr. Thapa warned against fragmented responses and urged coordinated action involving governments, international financial institutions, development banks, the private sector and civil society.

“The question is whether we respond through fragmentation and short-term reaction, or through cooperation, solidarity and shared responsibility,” he said.

UN officials also stressed the need to accelerate investment in renewable energy, stronger infrastructure and more resilient trade and energy networks to reduce future vulnerabilities.

“With coordinated action, sustained investment and a renewed commitment to multilateralism, we can build more resilient energy systems, secure supply chains and further promote inclusive and sustainable development,” Li added.