Demand for fossil fuels is projected to peak by the end of the decade as investment in clean energy rises, according to the International Energy Agency’s (IEA) latest World Energy Outlook report.
Global investment in sustainable energy has now reached almost US$2 trillion, which is nearly double the amount spent on new fossil fuels.
The IEA projects sustainable energy will meet almost all growth in energy demand over the coming 10 years, meaning oil, coal, and gas demand is set to peak by 2030.
“Low-emissions sources are set to generate more than half of the world’s electricity before 2030,” said the IEA.
However, the IEA said transitions to clean energy “need to move much faster to meet climate goals”.
Australia has reduced its use of fossil fuel sources. Its low-emissions electricity output doubled from 2018-2023.
China’s investment in sustainable energy has surged, as it accounted for 60% of new renewable capacity worldwide in 2023.
Nuclear energy generation is projected to remain stable. Its production is set to stay at around 3,000 TWh per year, with slight growth after 2030.
The report also noted that oil and gas supply is likely to be disrupted in the short-term due to geopolitical issues, such as conflict in the Middle East.