According to the International Energy Agency (IEA), global demand for fossil fuels will peak this decade in part due to Russia’s invasion of Ukraine, which has spurred many countries to switch to renewable energy. generated, according to the International Energy Agency (IEA).
The invasion of Ukraine created an energy crisis that, while triggering higher oil prices and the associated economic stress, also resulted in increased government spending on renewable energy, which could mark a “historic turning point” in the shift away from fossil fuels, the IEA said in its annual World Energy Outlook report.
Mohammed Bin Rashid Al Maktoum Solar Park in United Arab Emirates
If current spending trends are on solar and wind energy deployment, as well as electric vehicles and battery energy storage, global demand for fossil fuels will decline steadily starting in the mid-1990s. 2020, with emissions related to burning fossil fuels peaking around 2025, according to the report.
That has increased significantly compared to previous forecast of peak consumption, of less than five years ago, predicting peak global consumption will occur around the mid-2030s. And the IEA is making this prediction despite raw material prices increaseinflated by the invasion of Ukraine, brought battery prices and affordability to a halt.
2023 Cadillac Lyriq at the EVgo DC fast charging station.
However, spending has increased enough to accelerate that progress, according to the IEA, which predicts that global investment in renewable energy will now reach more than $2 trillion a year by 2030 – an increase of more than 50 percent. % compared to today. The IEA points to policies like the Inflation Reduction Act (IRA), which includes an improved EV tax credit, helping to ensure this trend.
Electric vehicles today are as clean as the energy they are plugged into, but it counts almost everywhere cleaner than burning gasoline today. The transition to renewable energy, along with the mass adoption of EVs, is also expected to bring economic benefits — many of which are tied to clean local air. Health benefits from electric cars.
