Advancing <scp>SDG</scp> 7 and <scp>SDG</scp> 13: Institutional Pathways to Energy Sustainability and Security Under Global Crises in the <scp>G7</scp> Economies

ABSTRACT The increasing complexity of realizing the goals of SDG 7, “Affordable and Clean Energy,” and SDG 13, “Climate Action,” in the face of rising global geopolitical tensions, economic instability, and growing ecological pressures has made it more complex for developed nations to hasten transitions to renewable energy sources while maintaining secure supply systems that support growth and industrialization. Against this background, this study investigates the impact of global crisis factors and carbon pressures on energy sustainability and energy security in the G7 nations, with a focus on the moderating role of institutional quality and environmental policy stringency using data from 1990 to 2024. The study uses second‐generation panel techniques that correct for cross‐sectional dependence and slope heterogeneity, with Driscoll–Kraay standard errors (DKSE) for the baseline model. To address potential endogeneity, the study uses the Lewbel‐2SLS‐heteroskedasticity‐based instrumental variable (IV) estimator. The results show that geopolitical risk and economic policy uncertainty are significant factors that impede the development of renewable energy and increase vulnerability to external energy dependence. Nevertheless, effective governance and strong environmental regulations can mitigate these adverse effects and enhance system resilience. The evidence of causality confirms the existence of dynamic relationships between crises and energy outcomes. The results emphasize the crucial role of institutional capacity in promoting sustainable and secure energy development in a turbulent world.