Worldwide demand for fossil fuels will peak before this decade ends as each of the countries is moving towards an alternative energy source, as per the new report by the International Energy Agency.
The analysis by IEA shows
“the momentum behind clean energy transitions is now sufficient for global demand for coal, oil and natural gas to all reach a high point before 2030.”
This change came as the investments in green energy have increased by 40% since 2020. To drive home this point, the data portrays that 1 in every 25 vehicles sold in 2020 got its energy source from electricity. This year, the number has changed to 1 in every 5 vehicles.
Each country has made its contribution towards this push to become a greener economy.
The analysis by IEA has calculated that 50% of new car registrations will have an electric source in 2030 due to the Inflation Reduction Act, which offers tax incentives and other subsidies for each and everything, which starts from wind farming to EV purchases.
The biggest energy consumer in the world, China, has also stepped up to invest in green initiatives. China’s solar adoption, for instance, is bigger than in any other country.
The report also states the growth of China’s GDP is anticipated to average just a little under 4% annually by 2030, which is a slowdown from the previous years. In the last decade, China accounted for approximately two-thirds of the increase in the global consumption of oil and almost one-third of the increase in natural gas.
“Momentum behind China’s economic growth is ebbing and there is greater downside potential for fossil fuel demand if it slows further,”
the study reads.
“This results in its total energy demand peaking around the middle of this decade, with robust expansion of clean energy putting overall fossil fuel demand and emissions into decline.”