Global Energy Consumption 2025 Hits Record High Despite Surge in Renewables

In the realm of global energy trends, 2024 marked a pivotal yet contradictory year. Despite reaching new heights in renewable energy adoption, the world’s consumption of fossil fuels surged to unprecedented levels, propelling carbon emissions past 40 gigatonnes of CO2 for the first time. This revelation comes from the latest annual review by the Energy Institute, underscoring a persistent challenge in our energy landscape.

Juliet Davenport, President of the Energy Institute, lamented the findings as another year dominated by high energy demands worldwide. Fossil fuel consumption rose by 1.5%, totaling 505 exajoules, despite a notable 13% increase in wind and solar power generation, which achieved a record 4,748 terawatt hours.

The report, compiled by consultants KPMG and Kearney, paints a complex picture. While advanced economies may have seen peak emissions in their energy sectors, developing nations continue to escalate their reliance on coal, gas, and oil. Fossil fuels maintained a staggering 81.5% share of the world’s primary energy, only marginally down from the previous year’s 82%, despite the growth of renewable sources.

Simon Virley, UK Head of Energy and Natural Resources at KPMG, highlighted the dichotomy: “Even as renewables reach new heights, global energy demand surged by 2%, pushing fossil fuel usage higher.” Gas consumption remained stable, while coal and oil saw increases of 1.6% and 2% respectively, the latter hitting a milestone of 100 million barrels per day.

Nick Wayth, CEO of the Energy Institute, acknowledged the slow pace of the energy transition, noting divergent trends across different regions. “While advanced economies show signs of fossil fuel demand peaking, developing economies in the global south continue to drive growth in fossil fuel consumption, spurred by economic development and improving living standards.”

Fuel Consumption in India

India, for instance, saw an 8% rise in fossil fuel use, matching its overall energy demand, with coal surpassing Europe and North America combined for the first time. In contrast, Europe’s fossil fuel dependence fell below 70%, a historic low since the Industrial Revolution, due to declining demand and the rise of renewables.

The dynamics in Europe were further influenced by geopolitical events, such as Russia’s invasion of Ukraine in 2022, which precipitated a 7% drop in gas demand in 2023 following a 13% decline the previous year.

The report’s findings underscore a critical juncture in global energy policy, highlighting both the strides made in renewable energy adoption and the enduring dominance of fossil fuels in meeting global energy demands. As the world grapples with the imperative to reduce carbon emissions, the challenge remains daunting, requiring concerted efforts across all sectors and regions to achieve a sustainable energy future.