BNO - End of fossil fuel era? IEA sees demand peaking before 2030
2023-09-12 06:36:42 ET
The International Energy Agency has forecast that demand for coal, natural gas, and oil will likely peak before 2030, the Financial Times reported.
The energy watchdog projected that the decline in fossil fuel consumption will start this decade because of the ongoing shift to renewable power and wider electric vehicle adoption.
"We are witnessing the beginning of the end of the fossil fuel era, and we have to prepare ourselves for the next era," Fatih Birol, IEA executive director, was quoted in the report .
"This is the result of renewables increasingly outmatching gas for producing electricity, the rise of heat pumps and Europe's accelerated shift away from gas following Russia's invasion of Ukraine," Birol noted in an FT op-ed .
"Even in China, the world's largest coal consumer, the impressive growth of renewables and nuclear power, alongside a slower economy, point to a decrease in coal use soon."
Birol said the projections, which will be published next month in the IEA's World Energy Outlook, show that the world is "on the cusp of a historic turning point."
While efforts to avoid the worst effects of climate change are making headway, Birol called on governments to implement "stronger and faster" policies.
The U.S. and Europe launched ambitious programs to ramp up renewable energy use, although they have faced backlash over the high cost of transitioning to clean power.
The IEA has also faced criticism from the oil and gas industry over its demand forecasts, due to the risk of under-investment in their supplies and projects.
"Oil and gas companies may well be misjudging the market if they expect further growth of oil and gas demand across this decade," Birol cautioned. "New large-scale fossil fuel projects carry not only major climate risks, but major financial risks."
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End of fossil fuel era? IEA sees demand peaking before 2030