Global fossil fuel consumption and energy emissions reached all-time highs in 2023, even as fossil fuels’ share of the global energy mix decreased slightly, according to the industry’s Statistical Review of World Energy report published on Thursday.
The report, produced by the Energy Institute in collaboration with consultancies KPMG and Kearney, highlights the challenge of transitioning to lower-carbon energy sources amid growing global demand for fossil fuels. “We hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead,” said Romain Debarre of Kearney.
Despite the scaling up of renewable energy, overall global primary energy consumption hit a new record of 620 Exajoules in 2023, with emissions exceeding 40 gigatons of CO2 for the first time. “In a year where we have seen the contribution of renewables reaching a new record high, ever increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged,” said Simon Virley of KPMG.
The report recorded shifting trends in fossil fuel use across regions. In Europe, the fossil fuel share of energy fell below 70 percent for the first time since the industrial revolution. However, fossil fuels accounted for almost all demand growth in India in 2023, and China saw a 6 percent rise in fossil fuel use to a new high, even as it led global additions in renewable energy generation.
“In advanced economies, we observe signs of demand for fossil fuels peaking, contrasting with economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth,” said Energy Institute Chief Executive Nick Wayth.
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Key developments
The report highlights several key developments in 2023:
- Global oil consumption exceeded 100 million barrels per day for the first time, with supply growth met by non-OPEC+ producers.
- Natural gas production and consumption remained relatively flat, while LNG supply rose by almost 2 percent.
- Coal consumption hit a new high of 164 Exajoules, driven by increased use in China and India.
- Renewable energy generation, excluding hydropower, grew by 13 percent to a new record high of 4,748 terawatt-hours.
Despite the growth in renewables, the report notes that emissions from the energy sector have increased by 50 percent since 2000, underscoring the challenge of achieving the global climate goals.
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