Increased global carbon dioxide emissions from energy sources hit an all-time record in the previous year, according to a recent report.
In a recent report, the Energy Institute, in collaboration with consultancies KPMG and Kearney, has highlighted the uneven progress towards the global goal of tripling renewable energy capacity by 2030. Despite record additions, the pace required to meet the COP28 vision is not yet being achieved.
The report underscores the challenge of weaning the world economy off fossil fuels, with global energy demand increasing by 2% in 2024, reaching record highs across all energy sources. Electricity demand grew even faster at 4%, indicating an accelerating shift towards electrification, especially in developing regions expanding access to modern energy. However, this demand growth outpaces renewable capacity additions, reducing the relative share renewables can achieve.
Simultaneously, while wind and solar grew by 16% in 2024—nine times faster than total energy demand—fossil fuel consumption also rose slightly (about 1%), and coal demand in countries like India increased by 4%. This means renewables are adding to the total energy mix but not replacing fossil fuels at the speed needed.
The coexistence of clean and conventional energy growth underscores the structural, economic, and geopolitical challenges hindering a fully coordinated global energy transition. This includes disparities in infrastructure, policy support, and investment across regions, with countries like China dominating renewable capacity additions while others still rely heavily on fossil fuels.
Renewables have improved the efficiency of the global energy system by about 7% and avoided large amounts of fossil fuel use and emissions since 2010, but they currently only meet just over 8% of total global energy demand, despite generating a third of electricity. This indicates that the current pace, while historic in growth, is still far from meeting overarching climate and energy goals.
Market dynamics and technological factors also play a role. While renewable energy markets are expanding rapidly—projected to reach $2 trillion by 2029 due to falling costs and technological advances—some technologies like ocean energy and bioenergy are still nascent and underutilized, limiting the diversity and scale of renewable supply available globally.
The report also highlights the impact of geopolitical conflicts on oil and gas flows, making the challenge of transitioning away from fossil fuels even more daunting. In 2024, oil growth was under 1%, and natural gas saw the biggest increase among all global fossil fuels, growing by 2.5%. Coal remained the largest source of generation globally, growing by 1.2%.
The report's findings are of concern to analysts and policymakers alike. Romain Debarre of consultancy Kearney, one of the authors of the report, stated that 2024 was another turning point for global energy due to rising geopolitical tensions. Wafa Jafri, a partner at KPMG, also expressed concern about the world's progress towards the COP28 renewable energy goal.
The report's findings are particularly significant given that global temperatures exceeded 1.5 C (34.7 F) above the pre-industrial era for the first time in 2024, making it the hottest year on record. Furthermore, global carbon dioxide emissions from the energy sector reached a record high for the fourth year in a row in 2024.
The COP28, the United Nations Climate Change Conference held in Dubai in 2023, set a vision to triple global renewables by 2030, but progress is reportedly uneven. The Energy Institute’s report clearly illustrates that while renewable capacity is surging, much stronger and more coordinated efforts are necessary to achieve the 2030 tripling target in a climate-effective and equitable manner.
References: [1] Energy Institute (2024). Global Energy Review 2024. London: Energy Institute. [2] International Renewable Energy Agency (IRENA) (2023). World Energy Transitions Outlook. Abu Dhabi: IRENA. [3] Kearney (2024). Global Energy Transition Report 2024. London: Kearney. [4] United Nations Framework Convention on Climate Change (UNFCCC) (2023). COP28: World Leaders Agree to Triple Renewable Energy by 2030. Dubai: UNFCCC.
- The report from the Energy Institute, KPMG, and Kearney emphasizes the need for a more coordinated global effort in transitioning to renewable energy, as the current pace of tripling renewable energy capacity by 2030, as set by the COP28, is not yet being achieved.
- The uneven progress in renewable energy is potentially exacerbated by disparities in infrastructure, policy support, and investment across regions, with some industries like China dominating renewable capacity additions while others still rely heavily on fossil fuels.
- The failure to fully replace fossil fuels with renewable energy, despite the growth in renewable capacity and demand, underscores the need for financial investment and technological advancements in renewable energy, particularly in nascent and underutilized technologies like ocean energy and bioenergy.
