IEA predicts demand for fossil fuels will peak before 2030

The International Energy Agency (IEA) has forecast that demand for oil, gas and coal will peak before 2030 due to the rapid growth of renewables and electric vehicles, The Financial Times reported on Tuesday.

In 2022 the IEA projected that fossil fuels could peak around 2030 but has recently pulled forward its estimates due to heightened investment in green technologies.

“We are witnessing the beginning of the end of the fossil fuel era, and we have to prepare ourselves for the next era,” said Fatih Birol, executive director of the IEA. “The world is on the cusp of a historic turning point.”

Birol also highlighted a move from China to switch towards less energy-intensive industries as a key factor, which accounted for around one-third of the rise in global gas demand and two-thirds of global oil demand.

“Solar, wind and nuclear power will be eating up the potential growth of coal in China,” he said.

Birol called on policymakers to continue their efforts as carbon emission reduction efforts remain far from limiting global warming to 1.5 degrees Celsius.

The IEA is primarily funded by the Organisation for Economic Co-operation and Development.

The adjusted projections will be published in IEA’s energy outlook report in October 2023.