Installed renewables ( GW ) |
Energy intensity improvement |
Fossil fuel demand ( EJ ) |
Fossil Fuel methane ( Mt ) |
Clean energy investment in EMDE * ( Tn USD ) |
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12 000 |
3x |
5 % |
2x |
500 |
125 |
2.5 |
3x |
9 600 |
4 % |
400 |
-25 % |
100 |
2.0 |
7 200 |
3 % |
300 |
75 |
1.5 |
4 800 |
2 % |
200 |
50 |
1.0 |
-75 % |
2 400 |
1 % |
100 |
25 |
0.5 |
2022 2030 |
2022 2030 |
2022 2030 |
2022 2030
2022 2030
* EMDE = Emerging market and developing economies
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The report envisions a world in 2030 with 10 times as many electric cars on the road , solar power generating more electricity than the current entire US power system , renewables accounting for nearly 50 per cent of global electricity , electric heating systems outselling fossil fuel boilers , and three times as much investment going into new offshore wind projects than into new coal- and gas-fired power plants . All these increases are based only on the current policy settings of governments worldwide .
The increasing momentum behind clean energy technologies and global economic shifts have significant implications for fossil fuels , with the first-ever visible peaks in global demand for coal , oil , and natural gas this decade based on current policies . This presents a crucial opportunity to reduce the share of fossil fuels in the global energy supply , decreasing from 80 per cent to 73 per cent by 2030 , while global energy-related carbon dioxide ( CO2 ) emissions are expected to peak by 2025 .
However , the current demand for fossil fuels remains too high to meet the Paris Agreement ’ s goal of limiting global temperature increases to 1.5 ° C , posing risks of worsening climate impacts and energy system vulnerabilities .
To address this , the WEO-2023 proposes a global strategy focusing on five key pillars : tripling global renewable capacity , doubling energy efficiency improvements , reducing methane emissions , increasing clean energy
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investments , and ensuring a structured decline in fossil fuel use , including halting new coal-fired power plants .
The WEO-2023 is framed by conflict and uncertainty , mainly due to the situation in Ukraine and the Middle East . This instability underscores the vulnerabilities of relying on fossil fuels and the benefits of transitioning to a more sustainable energy system for energy security and emissions reduction .
The report highlights that clean energy projects face challenges in some markets , including cost increases , supply chain bottlenecks , and higher borrowing costs . However , clean energy remains the most dynamic part of global energy investment . The pace of its growth in the coming years will significantly influence the trajectory of global energy systems across different scenarios .
The global energy crisis has highlighted the importance of an affordable , reliable , and resilient energy supply , particularly in developing economies with growing energy demands . Energy transitions emphasise electrification and technologies like wind , solar PV , and batteries , emphasising electricity security and diversified clean energy supply .
Emerging markets and developing economies play a significant role , accounting for a substantial portion of global electricity demand growth across different scenarios . •
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References IEA . ( 2023 ). Annual investment in fossil fuels and clean energy , 2015-2023 . IEA : Paris . https :// www . iea . org / data-and-statistics / charts / annualinvestment-in-fossil-fuels- andcleanenergy- 2015-2023 , IEA . Licence : CC BY 4.0
IEA . ( 2023 ). World Energy Outlook 2023 . IEA : Paris . https :// www . iea . org / reports / worldenergy-outlook-2023 , License : CC BY 4.0 ( report ); CC BY NC SA 4.0 ( Annex A )
IRENA . ( 2023 ). World Energy Transitions Outlook 2023 : 1.5 ° C Pathway , Volume 1 , International Renewable Energy Agency , Abu Dhabi .
SEDA Malaysia . ( 2021 ). Malaysia Renewable Energy Roadmap . https :// www . seda . gov . my / reportal / wp-content / uploads / 2022 / 03 / MyRER _ webVer3 . pdf
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