DAccording to Fatih Birol, the Executive Director of the influential International Energy Agency (IEA), the world is at the „beginning of the end“ of the era of fossil fuels. In an interview with the Financial Times on Tuesday, Birol stated that the seemingly unstoppable demand growth for coal, oil, and gas will come to an end in this decade, with significant implications for the global energy sector and the fight against climate change.
Birol admitted that in recent years there has been talk of „Peak Oil“ and „Peak Coal“ while consumption remains at an all-time high. However, for the first time, IEA forecasts suggest that a demand peak for coal, oil, and gas will be reached in this decade, earlier than expected by many. Even without new climate policy measures, the demand for these three fossil fuels will reach a record high based solely on current political guidelines, according to Birol. The world is „at a historic turning point.“
According to the head of the IEA, the main reasons for the change in forecast are „the spectacular growth of clean energy technologies such as solar cells and electric vehicles, the structural changes in the Chinese economy, and the impact of the global energy crisis.“ The energy agency will provide further details in their annual outlook next month.
Birol mentioned the „impressive growth of renewable energy and nuclear energy“ even in China, the world’s largest coal consumer. This, combined with a lower economic growth, suggests a soon decline in coal usage in the Far East. The peak of global greenhouse gas emissions is now expected earlier than previously anticipated. However, Birol warned that greater efforts are still needed to limit global warming to 1.5 degrees.