The world’s consumption of fossil fuels reached an all-time high last year, propelling carbon dioxide emissions above 40 gigatonnes for the first time, states a comprehensive global energy report.
Despite a notable increase in renewable energy usage in 2023, the annual review by the Energy Institute reveals that consumption of fossil fuels also continued to rise. Juliet Davenport, President of the Energy Institute, emphasized that the report underscores “another year of peaks in our energy-intensive world,” highlighting record levels of fossil fuel consumption, which escalated by 1.5% to 505 exajoules.
These findings challenge the expectations of climate scientists who anticipated 2023 to mark the peak year for annual emissions before a gradual decline in the global fossil fuel economy.
The Energy Institute, a leading global professional body for the energy sector, noted that while emissions from the energy industry may have peaked in advanced economies, developing nations are increasingly relying on coal, gas, and oil.
According to the report, fossil fuels constituted 81.5% of the world’s primary energy sources last year, a marginal decrease from 82% the previous year, despite record-breaking outputs from wind and solar farms.
The report, authored by consultants at KPMG and Kearney, highlighted a 13% increase in wind and solar power in 2023, setting a new milestone of 4,748 terawatt hours.
However, this surge in renewable energy was insufficient to offset the global rise in primary energy consumption, which climbed by 2% to reach a record 620 exajoules, driving further fossil fuel utilization.
The review indicated stable global gas demand in 2024, with coal consumption rising by 1.6% and oil demand increasing by 2% to achieve a historic milestone of 100 million barrels per day.
Simon Virley, UK head of energy and natural resources at KPMG, commented on the persistently high share of fossil fuels, stating, “Despite renewables reaching unprecedented levels, the increasing global energy demand has meant fossil fuels maintaining their share at over 80% for yet another year.”
Nick Wayth, Chief Executive of the Energy Institute, acknowledged the “gradual” progress in the energy transition, noting diverse energy dynamics across different regions.
The report highlighted India’s 8% increase in fossil fuel consumption, aligning with overall energy demand and accounting for 89% of total energy use. This surpassed Europe and North America combined in coal usage for the first time.
In contrast, Europe witnessed a decline in fossil fuel use to below 70% of primary energy consumption for the first time since the Industrial Revolution, driven by reduced demand and the expansion of renewable energy sources.
The demand for gas in Europe notably decreased following Russia’s invasion of Ukraine in 2022, causing a collapse in pipeline gas imports and contributing to a 7% decline in overall gas demand in 2023, following a 13% drop the previous year.
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