by The International Energy Agency (IEA) has published its World Energy Outlook, predicting that by 2030, transportation and electricity will be significantly greener than they are currently. The forecast envisions a future with ten times more electric vehicles on the road, while renewables will account for 50% of the global electricity mix. In fact, solar panels alone will generate more electricity than the entire US power sector does at present.
The IEA was established after the oil crisis of the 1970s to safeguard global energy supplies. Now, as climate change continues to pose a threat to power grids worldwide, the agency emphasizes the need to bring renewables online in order to mitigate the impacts of extreme weather events, such as heatwaves and storms.
“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,” commented Fatih Birol, executive director of the IEA.
Thanks to declining costs, renewables, particularly solar and wind energy, are becoming the cheapest sources of power, gradually replacing fossil fuels in the global economy. The IEA’s latest Outlook indicates that demand for coal, oil, and gas is expected to peak within the next decade, a prediction made for the first time in reports assessing current policies. Additionally, governments plan to deploy around 66% more renewable energy by 2030 compared to last year’s projections, according to energy think tank Ember.
Achieving cleaner energy systems will require electrifying various sectors, including transportation, heating, and cooling systems in homes, and buildings. The IEA anticipates that electric heat pumps will outsell fossil fuel boilers globally by the end of the decade. The adoption of electric vehicles is also accelerating, with EVs projected to comprise one in five cars sold this year, up from one in 25 in 2020.
This progress is welcome news for policymakers working to reduce greenhouse gas emissions and combat climate change. The Paris Agreement, signed by nearly 200 countries, aims to limit global warming to approximately 1.5 degrees Celsius above preindustrial levels, thereby mitigating the impact of flooding, heatwaves, fires, and other climate-related disasters.
However, the IEA report emphasizes that the transition to clean energy must accelerate in order to meet this goal. To be successful, the agency suggests tripling global renewable energy capacity and investments in clean energy in developing economies.
Despite the advancements made in transitioning to cleaner energy sources, the world is still on track to experience roughly 2.4 degrees of global warming this century. Furthermore, the report highlights the potential oversupply of fossil gas, which contradicts global climate objectives. The surge in liquified natural gas (LNG) projects, driven by concerns over gas shortages following Russia’s invasion of Ukraine, could add nearly half of the current global LNG supply in additional capacity by 2030.
In December, world leaders will gather in Dubai for a United Nations climate summit, where a global agreement to phase out fossil fuels may be on the agenda. Rachel Cleetus, policy director and lead economist at the Union of Concerned Scientists, emphasized the need for nations to work together to secure an agreement on a rapid and fair phaseout of fossil fuels, alongside a substantial increase in renewable energy and energy efficiency.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
