Fossil fuel use, emissions hit record highs in 2023, report reveals

Global Energy Consumption and Emissions Reach New Heights in 2023

Global fossil fuel consumption and energy emissions broke records in 2023, despite a slight reduction in fossil fuels' share of the worldwide energy mix, according to the latest Statistical Review of World Energy report. A growing demand for fossil fuels alongside the increasing adoption of renewables emerges as a significant challenge in the battle against climate change, especially as global temperatures edge closer to the critical 1.5C (2.7F) threshold. This temperature rise marks the point beyond which the consequences such as extreme weather events are projected to intensify.

The fallout from the Russian invasion of Ukraine in 2022 prominently featured in last year's energy dynamics, marking a full year since Russian energy supplies were diverted from Western markets. Additionally, 2023 represented the first complete year free from major COVID-19 mobility restrictions. The report notes that global primary energy consumption reached an unprecedented 620 Exajoules (EJ), and emissions surpassed 40 gigatonnes of CO2 for the first time.

Significantly, while renewable energy contributions reached new highs in 2023, the unrelenting demand for energy prevented a notable decline in the proportion of energy derived from fossil fuels. For instance, Europe saw its fossil fuel share drop below 70% for the first time since the industrial revolution, reflecting contrasting trends between developed regions and the Global South where economic growth continues to drive fossil fuel consumption.

In India, fossil fuels dominated energy growth, while China saw a 6% rise in fossil fuel usage to a new peak. However, it’s important to note that China also led the global surge in renewable energy capacity, contributing over half of the global increase in renewable generation. The report underscores China's pivotal role in driving renewable energy adoption worldwide.

Highlights from the 2023 Report

Consumption

Global primary energy demand surged by 2% to 620 EJ. Fossil fuel use increased by 1.5% to 505 EJ, composing 81.5% of the energy mix, a marginal decline of 0.5% from 2022. Notably, no European country saw a rise in fossil fuel use in 2023. Electricity generation saw a 2.5% rise, while renewable energy generation, excluding hydro, jumped 13% to a record 4,748 terawatt-hours (TWh), and renewables' share of the energy mix, inclusive of hydro, reached 15%.

Oil

Oil consumption exceeded 100 million barrels per day (bpd) for the first time, driven by a 2% year-on-year increase. Non-OPEC+ producers, particularly the U.S., which saw a 9% rise in output, met the supply growth. China became the largest refining capacity holder, though its capacity utilization lagged behind the U.S. Global gasoline consumption slightly surpassed pre-pandemic levels, while biofuels production rose by 8%, predominantly in the U.S. and Brazil.

Natural Gas

Natural gas production and consumption remained mostly unchanged from the previous year. Liquefied natural gas (LNG) supply grew by nearly 2%. The U.S. emerged as the leading LNG supplier, overtaking Qatar. European gas demand fell by 7%, and Russia's share of European gas supply sharply declined from 45% in 2021 to 15% in 2023.

Coal

Coal consumption climbed to a record 164 EJ, driven by demand in China and India. India’s coal usage surpassed the combined consumption of Europe and North America, while U.S. coal consumption fell by 17% and has halved over the past decade.

Renewables

Renewable generation reached new heights, primarily due to increased wind and solar capacity, which saw significant growth. Renewables accounted for 74% of the net growth in overall power generation, with China leading the global increase in wind and solar capacities.

Emissions

Global emissions grew by 2% to over 40 gigatonnes, despite the slight decrease in fossil fuels' share of the energy mix. This rise in emissions is attributed to more intense use of coal and oil within the fossil fuel category since 2000, marking a 50% increase in emissions from energy.

As the world navigates these shifting energy dynamics, the data from 2023 underscores the complex interplay between fossil fuel dependency and the push towards renewable energy, posing a significant challenge for global climate goals.