IEA Doubles Forecast for Peak Fossil Fuel Demand

The International Energy Agency (IEA) has projected that global demand for oil, natural gas, and coal will peak by the decade's end, marking a significant shift towards a new 'Age of Electricity'. In its latest World Energy Outlook report, the IEA emphasized that low-emissions sources will generate over half of the world's electricity by 2030, although current policies are still lacking to meet net zero goals. The agency highlighted the potential for an oversupply of fossil fuels later this decade, which could lead to lower prices and provide much-needed relief for consumers. However, geopolitical tensions continue to present risks to energy security and climate efforts. The IEA's findings suggest that greater investments in clean energy and the removal of fossil fuel subsidies are crucial for a sustainable future. Despite recent volatility in fossil fuel prices, the long-term outlook indicates a decline in consumption as climate policies gain traction.