World oil, gas, coal demand to peak by 2030, IEA says
(EurActiv, 24 Oct 2023) World fossil fuel demand is set to peak by 2030 as more electric cars hit the road and China’s economy grows more slowly and shifts towards cleaner energy, the International Energy Agency said, undercutting the rationale for any rise in investment.
The report from the IEA, which advises industrialised countries, contrasts with the view of oil producer group the Organization of the Petroleum Exporting Countries, which sees oil demand rising long after 2030 and calls for trillions in new oil sector investment.
In its annual World Energy Outlook released on Tuesday (24 October), the IEA said peaks in oil, natural gas and coal demand were visible this decade in its scenario based on governments’ current policies – the first time this has happened.
“The transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question of ‘if’, it’s just a matter of ‘how soon’ – and the sooner the better for all of us,” said IEA Executive Director Fatih Birol.
“Governments, companies and investors need to get behind clean energy transitions rather than hindering them.”
Still, the IEA also said as things stand, demand for fossil fuels is set to remain far too high to keep within reach the Paris Agreement goal of limiting the rise in average global temperatures to 1.5 degrees Celsius.