LONDON- The International Energy Agency (IEA) has made a significant announcement, projecting that global demand for fossil fuels is poised to reach its peak by 2030. This forecast is attributed to the increasing prevalence of electric cars and China's shift towards cleaner energy, combined with a slower growth rate for its economy. The IEA's annual World Energy Outlook, released on Tuesday, marks the first time that the agency has predicted peaks in demand for oil, natural gas, and coal within this decade.
IEA Executive Director Fatih Birol emphasized that the transition to clean energy is an unstoppable global trend, and the question is no longer "if" but "how soon" it will occur. He called on governments, companies, and investors to support clean energy transitions rather than hinder them.
The report also highlighted that world demand for coal is expected to decline steeply after 2030, while the use of natural gas and oil will remain close to peak levels for the next two decades.
However, the IEA cautioned that current fossil fuel demand is on track to exceed the limits outlined in the Paris Agreement, jeopardizing efforts to limit global temperature increases to 1.5 degrees Celsius.
The IEA's projections for 2030 include a tenfold increase in the number of electric cars on the road worldwide. Key policies promoting clean energy in major markets are anticipated to influence future fossil fuel demand.
Notably, the IEA foresees a significant shift in China's role, with the country evolving into a "clean energy powerhouse" and playing a pivotal role in the growth of electric vehicle sales.
The agency's message is clear: to facilitate a smooth transition, increased investment in all aspects of a clean energy system is essential, rather than further investments in fossil fuels. This perspective challenges the position of the Organization of the Petroleum Exporting Countries (OPEC), which continues to advocate for trillions in new oil sector investment. OPEC has labeled calls to cease such investments as "misguided" and potentially leading to energy and economic instability.