By Robert Harvey
LONDON (Reuters) – Global fossil fuel consumption and energy emissions reached record highs in 2023, even as fossil fuels’ share of the global energy mix fell slightly this year, the industry’s Statistical Review of World Energy report said Thursday.
Growing demand for fossil fuels despite the scale-up of renewables could be a bottleneck for the low-carbon energy transition as global temperature rise reaches 1.5 degrees Celsius (2.7 degrees Celsius), the threshold above which scientists say impacts such as temperature rise, drought and floods. will become more extreme.
“We hope this report will help governments, world leaders and analysts move forward with a clear view of the challenge ahead,” said Romain Debarre of consultancy Kearney.
Last year marked the first full year of diverted Russian energy flows away from the West following Moscow’s invasion of Ukraine in 2022, and also the first full year without major restrictions on movement related to the COVID-19 pandemic.
Total global primary energy consumption reached a record high of 620 exajoules (EJ), the report said, while emissions exceeded 40 gigatonnes of CO2 for the first time.
“In a year in which we have seen the contribution of renewables reach a new record, ever-increasing global energy demand means that the share of fossil fuels has remained virtually unchanged,” said Simon Virley of consultancy KPMG.
The report recorded shifting trends in fossil fuel use across different regions. In Europe, for example, the share of fossil fuels in energy has fallen below 70% for the first time since the industrial revolution.
“In advanced economies, we see signs that demand for fossil fuels is peaking, in contrast to economies in the Global South, where economic development and improvements in quality of life continue to drive fossil fuel growth,” said Nick Wayth, CEO of the Energy Institute.
Trade organization the Energy Institute has been publishing the annual report together with consultancy firms KPMG and Kearney since 2023. Last year they took over from BP (NYSE:), which had been writing the report since the 1950s, a benchmark for energy professionals.
Fossil fuels were responsible for almost all of India’s demand growth in 2023, the report said, while fossil fuel use in China rose 6% to a new high.
But China was also responsible for more than half of global renewable energy generation additions last year.
“It is remarkable that China is adding more renewables than the rest of the world combined,” KPMG’s Virley told reporters.
Here are some highlights from the 2023 report:
CONSUMPTION * Global demand for primary energy increased by 2% in 2023 compared to 2022, to 620 EJ. * The use of fossil fuels increased by 1.5% to 505 EJ, accounting for 81.5% of the total energy mix, a decrease of 0.5% compared to 2022. * The use of fossil fuels will be in no European country has increased. * Electricity generation increased by 2.5%. % in 2023, slightly higher than last year’s 2.3% growth. * Generation from renewable fuels (excluding hydropower) increased by 13% to a new record of 4,748 terawatt hours (TWh). * The share of renewable energy sources in the total energy mix, excluding hydropower, was 8%, compared to 7.5% in the 2022 report. * Including renewable hydropower sources accounted for 15% of the global mix.
OIL * Oil consumption exceeded 100 million barrels per day for the first time ever in 2023, following a 2% year-on-year increase. * Oil supply growth was captured by non-OPEC+ producers, while US production rose 9% year-on-year. * China overtook the US last year as the country with the world’s largest refining capacity, with 18.5 million barrels per day, although refining volumes still lagged behind the US’s 87% with an 82% utilization rate. *Global gasoline consumption reached 25 million barrels per day last year, just above pre-pandemic levels in 2019. *Biofuel production rose 8% to 2.1 million barrels per day in 2023, driven by gains in the US and Brazil. * The US, Brazil and Europe accounted for 80% of global biofuel consumption.
NATURAL GAS * Global gas production and consumption remained relatively flat compared to the year 2023. * LNG supply increased by almost 2% to 549 billion cubic meters (bcm). *The US has overtaken Qatar as the largest global supplier of LNG after a 10% increase in production. * Total European gas demand had fallen by 7% in 2023. *Russia’s share of European gas supply was only 15% in 2023, compared to 45% in 2021.
COAL * Coal consumption reached a new record of 164 EJ in 2023, up 1.6% on the year, driven by China and India. *Indian coal consumption exceeded that of Europe and North America combined. * U.S. coal consumption is set to fall 17% in 2023 and has been cut in half over the past decade.
RENEWABLE ENERGY * Record levels of renewable energy generation were driven by increased wind and solar capacity, with 67% more additions in these two categories in 2023 than in 2022. * As much as 74% of net growth in total energy generation came from renewable energy sources. * China accounted for 55% of all renewable generation in 2023, and was responsible for 63% of new global wind and solar capacity.
EMISSIONS * Emissions have increased by 2% this year to above 40 gigatons. * Emissions increased despite the slight decline in the share of fossil fuels in the energy mix, as emissions within the fossil fuel category intensified as oil and coal use increased and gas remained stable. * The report notes that energy emissions have increased by 50% since 2000.
