Oil, gas, and coal demand to peak by 2030: IEA
The International Energy Agency (IEA) forecasts that by 2030, the demand for fossil fuels, such as oil, gas, and coal, will reach its peak due to the worldwide shift toward cleaner energy sources. IEA says the peak for the fossil fuel demand was visible this decade and it's the first time that it has happened. Fatih Birol, the agency's Executive Director, declared the move toward clean energy as "unstoppable" and encouraged governments, businesses, and investors to back clean energy transitions.
Electric cars and China's shift impact fossil fuel demand
By 2030, the IEA anticipates a tenfold increase of electric vehicles on roads globally, with half of all new car registrations in the US being electric. This growth is fueled by policies that support clean energy in major markets. China's role in worldwide energy demand is also evolving as its economy transitions to cleaner energy sources. The report emphasized that over 50% of global electric vehicle sales in 2022 occurred in China, demonstrating its status as a "clean energy powerhouse."
IEA warns the demand could exacerbate climate change effects
Although fossil fuel demand is expected to peak, the IEA cautions that current consumption levels remain too high to meet the Paris Agreement's objective of limiting global temperature increases to 1.5 degrees Celsius. "This risks not only worsening climate impacts after a year of record-breaking heat, but also undermining the security of the energy system, which was built for a cooler world with less extreme weather events," the agency warned.
Emissions set to peak by 2025, but gap remains
The IEA calls the shift toward clean energy the mark of "the beginning of the end of the fossil fuel era". In this regard, global greenhouse gas emissions are expected to peak by 2025. However, activists caution that there is a "massive and deadly gap" between the current rate of change and what is required to limit global warming to 1.5 degrees Celsius.
Investment in clean energy systems is crucial
The report stresses that increasing investment in all aspects of clean energy systems is crucial for a smooth transition away from fossil fuels. "The end of the growth era for fossil fuels does not mean an end to fossil fuel investment, but it undercuts the rationale for any increase in spending," said IEA. This contrasts with OPEC's stance, which advocates for trillions of investments in new oil projects and argues that halting such investments could cause "energy and economic chaos."
