Fossil Fuels Still Major Energy Source, Comprising 81% of Global Energy Mix, Says Report

In spite of the clamour for transition to cleaner energy, fossil fuels, which is made up of coal, oil and natural gas, accounted for 81 per cent of the World’s Energy Mix in 2023.

This was revealed in the “2024 Statistical Review of World Energy,” a publication of Energy Institute that was published in collaboration with KPMG and Kearney.

The report stated that the progress of the transition from fossil fuels has been slow, but the big picture masks diverse energy stories playing out across different geographies.

According to the report, coal, oil and natural gas accounted for 32 per cent, 23 per cent and 26 per cent of world energy consumption in 2023 respectively.

The report also showed that nuclear energy, hydroelectricity and other renewables accounted for just four per cent, six per cent and eight per cent of the global energy mix respectively during the year under review.

It said the global primary energy consumption reached a new record of 620 exajoules (EJ) for the second consecutive year in 2023, compared to 607 EJ in 2022, adding that fossil fuels accounted for over 80 per cent of the energy mix.

Also, Africa’s energy consumption was 20.87 EJ out of the overall 620 EJ, representing 3.4 per cent.

According to the report, “2023 saw a second consecutive record year for global primary energy consumption as it grew by 2.0 per cent, reaching 620 EJ.

“Its growth rate was 0.6 per cent above its 10-year average and over 5.0 per cent above its 2019 pre-COVID level. Whilst a new record in the consumption of fossil fuels (in absolute terms) was recorded, in 2023, it fell to 81.5 per cent compared to almost 81.9 per cent in 2022.

“With demand for natural gas, a relatively low carbon-intensive fossil fuel, remaining flat, the increased use of more carbon-intensive oil and coal meant that energy-related greenhouse gas emissions also reached a record high, exceeding 40 GtCO2e for the very first time.

“CO2 emissions from the combustion of fossil fuels are by far the largest source of energy-related greenhouse gas emissions contributing around 87 per cent of the total.

“The 2023 global energy-related greenhouse gas emissions exceeded 40 gigatonnes for the first time ever.”

“Oil consumption in particular rebounded strongly, largely on the back of China relaxing its zero-COVID lockdown policies. “Although demand for natural gas remained flat, consumption of crude oil broke through the 100 million barrels per day level for the first time ever and coal demand beat the previous year’s record level.

“Consumption of renewable energy grew at six times the rate of total primary energy, and electricity demand grew 25 per cent faster than total primary energy consumption,” the Energy Institute’s report said.

A breakdown of the energy consumption along regional lines showed that “global primary energy consumption reached a new record for the second consecutive year with non-OECD countries dominating both the share and annual growth rates. Fossil fuels continue to underpin their development accounting for 84 per cent of their energy mix.

“The contrast between the northern and southern hemispheres is quite stark. Consumption of primary energy in the Global South first exceeded that of the Global North in 2014. In 2023 it accounted for 56 per cent of total energy consumed and grew at twice the global average rate of 2.0 per cent.

“The Asia Pacific region was responsible for 85 per cent of the Global South’s demand (and 47 per cent of global demand) where the economies of China, India, Indonesia, Japan and South Korea dominated.

“Whilst Southern & Central America, and Asia Pacific experienced growth rates above the global average, total demand in Africa dropped by 0.4 per cent in 2023 and electricity consumption remained flat.

“Electricity demand in both North America and Europe experienced falls of -1 per cent and -2 per cent respectively. In these regions, electricity demand in particular is increasingly impacted by energy efficiency regulations, energy-efficient lighting, and changing consumer habits.”

On energy access, efficiency, and sustainability, the report stated that, “today, both Africa and South Asia have very low levels of energy demand relative to the size of their population. Europe and Southern & Central America are the only regions to be below both the global average for CO2 Intensity and Energy Consumption per GDP.”

According to the report, Africa and South Asia were responsible for less than 10 per cent of the world’s energy demand in 2023, but the prevalence of developing economies, large populations, low rate of access to energy today, potentially positions them for significant energy demand growth in the future.

“It is estimated that globally around 750 million people, about one out of 10, do not have access to electricity to light their homes, refrigerate their food, or keep cool in rising temperatures and around 2.6 billion people rely on heavily polluting biomass fuels such as charcoal, coal, and animal waste for heating and cooking,” the report said.

Dike Onwuamaeze

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