The world is set to make abundant energy by the second half of the decade as the production of batteries and solar panels surges - but there'll also be an excess of planet-warming fossil fuels, a report released Wednesday by the International Energy Agency said.
"We're now moving at speed into the Age of Electricity," IEA Executive Director Fatih Birol said in a press statement marking the release of the annual World Energy Outlook. Energy worldwide will "increasingly be based on clean sources of electricity," he said.
But the report also notes that the world is still way off what's needed to cwarming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial times - the limit set in the Paris Agreement - because emissions would decline too slowly. It expects demand for oil and gas to peak later this decade and puts the world on pace to hit 2.4 degrees (4.3 Fahrenheit) of warming.
China in particular - the world's current biggest emitter of greenhouse gases but also the main manufacturer of solar panels and batteries - is driving global energy trends, the report said.
In recent years, China has accounted for most of the growth in oil demand, but electric vehicles now make up 40% of new sales of cars there, and 20% of sales globally, putting major oil and gas producers "in a bind."
The report indicates that China's emissions of planet-warming gases may peak by 2025, but "given the changes underway in China we think that might be a bit pessimistic," said Bill Hare, CEO of Climate Analytics.
Hare said "there's every chance" China's emissions have already peaked in 2023, but more data is needed to be sure.
China already accounts for half the world's electric cars on the road. By 2030, it's projected that 70% of new car sales in China will be electric. With its massive additions of new wind and solar power, China is aligned with its target for addressing climate change.
The report outlines a future where EV adoption continues to gain momentum, potentially displacing up to 6 million barrels per day of oil demand by 2030. The agency said based on current trends and policies and the availability of materials, EVs will reach 50% of global car sales in 2030.
The clean energy expansion, however, is happening alongside a rise in demand for energy, including power produced by burning coal, according to the Paris-based agency. "This has meant that even as we saw record growth in clean energy installations and additions, emissions kept increasing," said Lauri Myllyvirta, lead analyst at the think tank Centre for Research on Energy and Clean Air.
Electricity demand is growing even faster than expected, "driven by light industrial consumption, electric mobility, cooling, and data centers and AI," the report said. The contours of switching heating, vehicles and some industry over to electricity, it said, are beginning to become clear.
Globally, the IEA said that the expansion of wind and solar power alongside the increasing adoption of EVs will ensure a peak in demand for coal, oil and gas within the decade, with carbon emissions also reaching their highest point and ramping downward.
As China's rapidly switches toward batteries and renewable energy, oil companies find they can sell more of their product to India.
The IEA projects that India will add nearly two million barrels per day of oil to its demand by 2035, potentially offering a lifeline to oil producers looking to offset declining growth in other regions.
Laveesh Bhandari, president of the New Delhi-based think tank Centre for Social and Economic Progress, said India's booming economic growth means it will take the energy it can get.
"While demand for EVs will rise exponentially, the growth will not be able to cover all of the additional growth in demand for vehicles," Bhandari said. "So fossil fuel-powered vehicles use will increase for some time before leveling off and falling."
"We're now moving at speed into the Age of Electricity," IEA Executive Director Fatih Birol said in a press statement marking the release of the annual World Energy Outlook. Energy worldwide will "increasingly be based on clean sources of electricity," he said.
But the report also notes that the world is still way off what's needed to cwarming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial times - the limit set in the Paris Agreement - because emissions would decline too slowly. It expects demand for oil and gas to peak later this decade and puts the world on pace to hit 2.4 degrees (4.3 Fahrenheit) of warming.
China in particular - the world's current biggest emitter of greenhouse gases but also the main manufacturer of solar panels and batteries - is driving global energy trends, the report said.
In recent years, China has accounted for most of the growth in oil demand, but electric vehicles now make up 40% of new sales of cars there, and 20% of sales globally, putting major oil and gas producers "in a bind."
The report indicates that China's emissions of planet-warming gases may peak by 2025, but "given the changes underway in China we think that might be a bit pessimistic," said Bill Hare, CEO of Climate Analytics.
Hare said "there's every chance" China's emissions have already peaked in 2023, but more data is needed to be sure.
China already accounts for half the world's electric cars on the road. By 2030, it's projected that 70% of new car sales in China will be electric. With its massive additions of new wind and solar power, China is aligned with its target for addressing climate change.
The report outlines a future where EV adoption continues to gain momentum, potentially displacing up to 6 million barrels per day of oil demand by 2030. The agency said based on current trends and policies and the availability of materials, EVs will reach 50% of global car sales in 2030.
The clean energy expansion, however, is happening alongside a rise in demand for energy, including power produced by burning coal, according to the Paris-based agency. "This has meant that even as we saw record growth in clean energy installations and additions, emissions kept increasing," said Lauri Myllyvirta, lead analyst at the think tank Centre for Research on Energy and Clean Air.
Electricity demand is growing even faster than expected, "driven by light industrial consumption, electric mobility, cooling, and data centers and AI," the report said. The contours of switching heating, vehicles and some industry over to electricity, it said, are beginning to become clear.
Globally, the IEA said that the expansion of wind and solar power alongside the increasing adoption of EVs will ensure a peak in demand for coal, oil and gas within the decade, with carbon emissions also reaching their highest point and ramping downward.
As China's rapidly switches toward batteries and renewable energy, oil companies find they can sell more of their product to India.
The IEA projects that India will add nearly two million barrels per day of oil to its demand by 2035, potentially offering a lifeline to oil producers looking to offset declining growth in other regions.
Laveesh Bhandari, president of the New Delhi-based think tank Centre for Social and Economic Progress, said India's booming economic growth means it will take the energy it can get.
"While demand for EVs will rise exponentially, the growth will not be able to cover all of the additional growth in demand for vehicles," Bhandari said. "So fossil fuel-powered vehicles use will increase for some time before leveling off and falling."
You may also like
Alan Shearer shares Thomas Tuchel theory and aims dig at 'surprising' England snub
Photo of Jimmy Carter in voting queue viral: 'Elder abuse', 'Criminal and disgusting'
SpiceJet receives 'bomb' threat for two flights on social media handle, pax disembarked
What's new in Apple's latest iPad mini?
From Snakes and Ladders to 1000 Babies: Latest Malayalam, Tamil, Telugu OTT releases to watch on Netflix, Prime Video, Disney+ Hotstar
The world's biggest man-made forest that's got nearly 500 million trees
Greggs has announced a surprising new venture
"Nowhere seen in elections": Union Minister Pralhad Joshi slams Congress for its poor show in J-K polls
Nayab Singh Saini stakes claim to form BJP govt in Haryana
Dubai: Pay fines, renew driving licence in instalment from next week
BlackRock in talks with Jio Financial Services for India private credit venture
Loose Women legend breaks down in tears as she pays tribute to 'missed' co-star
Bank of Maharashtra sees huge jump in second quarter profit, will the stock see action?
Tech Hiring: Wanted Million Cloud Professionals in FY25, Check Details Here
DWP will 'directly contact' 120,000 people to claim £3,900 boost - are you eligible?
Maharashtra Assembly Election 2024: Eligible Voters Have 3 More Days To Register, Check Details Here
This Bangalore based company got the contract for bullet train, the train running at 280 kmph will have these facilities
Daniel Ricciardo suggests he's "retired" from F1 in friend's Instagram post
Inside Annie Kilner and Kyle Walker's 'final shot' at embattled marriage before 'collapse'
End-of-life doctor reveals what happens right before you die - and says not to be afraid