National and International Legal Mega-Challenges of Realizing Energy Transition in the Islamic Republic of Iran

Document Type : ISI

Authors

1 Associate Professor, Department of Public Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.

2 PhD Candidate in Public International Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.

Abstract

 Introduction
Energy transition represents a fundamental transformation in the global energy system toward achieving the Paris Agreement goals and combating climate change. This transition involves shifting from fossil fuel dependency to renewable energy sources and improving energy efficiency. Human civilization has progressed through successive energy transitions, from direct solar energy to fire, wind power, steam power for industrialization, and ultimately to fossil fuels beginning with James Watt's steam engine in 1776. However, intensive fossil fuel use since the 19th century has released enormous greenhouse gases, raising Earth's temperature by more than 1°C since the mid-19th century, with projections indicating potential increases of up to 2.3°C by the end of this century. This necessitates urgent governmental action.
For Iran, energy transition is significant due to three main factors: (1) heavy dependence on oil and gas resources for national revenue, (2) growing energy consumption, and (3) severe energy imbalance. Despite abundant renewable resources, overdependence on fossil reserves has hindered renewable infrastructure development. President Pezeshkian's January 2025 directive to establish the “Organization for Energy Optimization and Strategic Management” to implement the National Energy Imbalance Improvement Plan underscores the urgency of the issue. The main question of the present study is: what fundamental challenges exist in the legal sector along Iran’s path toward realizing energy transition, and what suggestions can be made to overcome them? The answer to this question can enhance understanding of current governance performance and pave the way for adopting precise legal measures and strategies commensurate with the challenges, an area that has not yet been adequately addressed.
Method
This research, using a descriptive-analytical approach, assesses the fundamental challenges facing Iran in its energy transition. The methodological framework consists of two main parts:
First, a comprehensive documentary analysis of the Iranian legal system, including a review of the Constitution, general policies issued by the Leader, laws of the Islamic Consultative Assembly, executive regulations, and international commitments ratified by Iran. This legal corpus was systematically analyzed to identify regulations related to energy transition, renewable energy development, and combating climate change, as well as the challenges associated with their implementation.
Second, the research developed a new analytical framework for legal challenges, categorizing them into two levels: national and international. At the national level, challenges related to legislative and executive systems were identified. At the international level, challenges concerning energy diplomacy and Iran’s patterns of global partnership were examined, particularly in the context of climate agreements and renewable energy-based cooperation.
Conclusions
This assessment reveals a paradoxical situation: while Iran possesses a comprehensive legislative framework theoretically supporting energy transition, significant implementation deficiencies and structural inefficiencies severely limit practical progress. National legal indicators demonstrate legislative inflation combined with enforcement deficits. Despite extensive laws promoting renewable energy, actual deployment remains negligible, less than 1% of electricity generation, due to institutional entanglement and insufficient implementation mechanisms.International legal indicators reveal diplomatic passivity and declining global participation as a result of economic sanctions.
Four key conclusions emerge:
First, Iran urgently needs legislative harmonization through a comprehensive energy law that consolidates existing provisions, reduces regulatory complexity, and establishes clear implementation pathways with enforcement mechanisms.
 Second, institutional restructuring is essential to streamline energy governance and eliminate overlapping responsibilities.
Third, Iran must develop proactive energy diplomacy strategies capable of functioning despite sanctions, focusing on technical cooperation with countries maintaining active relations.
Fourth, legal mechanisms must be developed to incentivize private sector investment in renewable energy while creating disincentives for fossil fuel dependency.
The newly established Organization for Energy Optimization and Strategic Management represent a potential step forward if properly empowered. However, without addressing the fundamental challenges identified, Iran will continue to struggle in implementing its energy transition ambitions. As global energy systems shift toward renewable sources, Iran risks both economic marginalization and environmental vulnerability without accelerating energy transition through effective legal and institutional reforms.

Keywords

Main Subjects

References

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Volume 11, Issue 1
September 2025
Pages 65-98

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