In 2023, global fossil fuel consumption and energy emissions soared to unprecedented levels, according to the Statistical Review of World Energy. Despite a slight decrease in fossil fuels’ share of the global energy mix, demand for these energy sources continued to rise, posing challenges for the transition to lower carbon energy as global temperatures approach the critical threshold of 1.5°C.
Rising Fossil Fuel Demand
Fossil fuel usage surged in several regions, with India experiencing significant growth and China witnessing a 6% increase, reaching new heights. This rise came despite the expansion of renewable energy sources. “We hope this report will help governments and analysts recognize the challenges ahead,” said Romain Debarre from consultancy Kearney.
Key Global Trends
The report highlighted the impact of geopolitical shifts, such as the rerouting of Russian energy flows following the Ukraine invasion and the lifting of COVID-19 movement restrictions. Global primary energy consumption hit a record 620 Exajoules (EJ), while emissions surpassed 40 gigatonnes of CO2 for the first time.
Regional Shifts and Renewable Energy
Europe saw a decline in fossil fuel’s share of energy, dropping below 70% for the first time since the industrial revolution. In contrast, developing economies continue to drive fossil fuel growth due to economic development and quality of life improvements. “In advanced economies, fossil fuel demand appears to be peaking,” noted Energy Institute Chief Executive Nick Wayth.
Fossil Fuels and Renewables
Fossil fuels accounted for 81.5% of the global energy mix in 2023, down by 0.5% from 2022. Despite the record contribution from renewables, the share of energy from fossil fuels remained nearly unchanged. “The increase in global energy demand means the contribution of renewables hasn’t significantly reduced fossil fuel usage,” said Simon Virley from KPMG.
Highlights from the Report
Consumption
- Global primary energy demand rose by 2% to 620 EJ.
- Fossil fuel use increased by 1.5% to 505 EJ.
- Renewable energy generation (excluding hydro) grew by 13%, reaching a new high of 4,748 terawatt-hours (TWh).
Oil
- Oil consumption exceeded 100 million barrels per day (bpd) for the first time, with a 2% year-on-year rise.
- The U.S. saw a 9% increase in oil output, while China became the largest refining capacity holder.
Natural Gas
- Global gas production and consumption remained stable.
- The U.S. overtook Qatar as the leading LNG supplier, with a 10% rise in production.
Coal
- Coal consumption reached a new high of 164 EJ, driven by demand in China and India.
- U.S. coal consumption fell by 17%, continuing a decade-long decline.
Renewables
- Renewable generation hit a record high, driven by wind and solar capacity increases.
- China accounted for 55% of global renewable generation additions.
Emissions
- Emissions grew by 2%, surpassing 40 gigatonnes.
- Increased emissions were due to higher usage of oil and coal, despite a slight reduction in fossil fuels’ share of the energy mix.
The report, published by the Energy Institute in collaboration with KPMG and Kearney, underscores the ongoing challenges in balancing energy demand with environmental sustainability. As fossil fuel consumption and emissions reach new peaks, the urgency for effective climate action and the transition to renewable energy sources becomes increasingly critical.
