Despite global calls to reduce carbon emissions and the use of fossil fuels as an energy source, 2023 saw record highs in energy consumption, emissions and the use of fossil fuels worldwide.

Energy consumption increased by 2% to 620 exajoules (EJ) and fossil fuel consumption rose 1,5% to a record high of 505 EJ – driven by the use of coal (up 1,6%) and oil (up 2% and above 100 billion barrels a day for the first time) – while gas consumption remained flat.

Nevertheless, as part of the total energy mix, fossil fuel consumption declined to 81,5% in 2023 compared with 82% in 2022.

These are some key findings of the 73rd Energy Institute (EI) Statistical Review of World Energy 2024 released last month. The report, authored by the EI, KPMG and Kearney, presents complete global energy data for the first time in its history.

China and India primarily drove coal consumption while India exceeded that of Europe and North America combined.

Europe and the US showed signs of peaking or post-peak fossil fuel demand across their economies. In Europe, fossil fuels were below 70% of primary energy consumption for the first time since the Industrial Revolution. In the US, fossil fuel consumption fell 2% to just over 80% of primary energy consumed and coal consumption fell 17% in 2023.

Renewable generation at record levels

Solar and wind pushed global renewable energy generation to record levels, increasing by 13% (excluding hydro) in 2023. Renewables grew, on average, by 14%. Solar and wind capacity grew rapidly in 2023, with 462 GW added, by 67% compared with 2022.

In 2023, Chinese renewables accounted for 55% of additional generation globally – more than twice that of Europe, India and the US combined. Installed capacity accounted for 63% of global wind and solar additions.

In 2023, the total installed capacity of grid-scaled battery storage was just under 56 GW with 50% in China.

Speaking at the launch of the review, Nick Wayth, EI’s CEO, expressed concern that the data provided little encouragement in terms of global climate change mitigation. Clean energy is not meeting demand growth and, therefore, not displacing fossil fuels. “Arguably, the transition has not even started,” he said.

Despite slow progress, the big picture masks diverse energy stories across geographies. “In advanced economies, we observe signs of demand for fossil fuels peaking, contrasting with economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth.”

At the first COP in 1995, the share of world energy demand from fossil fuels was 86%. “Since then, through all the efforts, it’s come down to 81,5%. The world is moving too slowly to be on track for the Paris Agreement goals,” said Simon Virley, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK.

He added that it was time to redouble efforts to reduce carbon emissions and to provide finance and capacity to build more low-carbon energy sources in the Global South where demand is growing rapidly.

“We must facilitate capacity building and overcome barriers to clean energy finance everywhere or the global COP28 goal of tripling renewables – and 2°C let alone 1,5°C – will not happen,” said Wayth.