Wind, Solar Grow 16%, But Fossil Fuel Use Persists: Report

Global CO₂-equivalent emissions from energy rose 1% in 2024, marking a fourth consecutive annual record, the Energy Institute (EI) said. The increase came in a year when average temperatures consistently breached the 1.5°C global warming threshold. The 74th edition of EI’s Statistical Review of World Energy, developed with Kearney and KPMG, offers a comprehensive overview of global energy trends.

The study showed that Wind and solar energy alone expanded by an impressive 16% in 2024, nine times faster than total energy demand. Yet this growth did not fully counterbalance rising demand elsewhere, with total fossil fuel use growing by just over 1%, highlighting a transition defined as much by disorder as by progress.

Impact On Crude Oil Demand & Gas Demand 

Crude oil demand in OECD countries remained flat, following a slight decline in the previous year. In contrast, non-OECD countries saw oil consumption rise by 1%, where much of the world’s energy demand growth is concentrated, and fossil fuels continue to play a dominant role. Notably, Chinese crude oil demand fell in 2024 by 1.7%, indicating that 2023 may have reached a peak. Elsewhere,  global natural gas demand rebounded, rising by 2.5% as gas markets rebalanced after the 2023 slump. India’s demand for coal rose 4% in 2024 and now equals that of the CIS, Southern and Central  America, North America, and Europe combined.

These trends underscore a stark truth: while renewable energy is scaling faster than ever, global demand is rising even faster. Rather than replacing fossil fuels, renewables are adding to the overall energy mix. This pattern, marked by simultaneous growth in clean and conventional energy, illustrates the structural, economic, and geopolitical barriers to achieving a truly coordinated global energy transition.

Factors Affecting Energy Demand

Energy Institute President Andy Brown OBE FEI said, “This year’s data reflects a complex picture of the global energy transition. Electrification is accelerating, particularly across developing economies where access to modern energy is expanding rapidly. However, the pace of renewable deployment continues to be outstripped by overall demand growth, 60% of which was met by fossil fuels. The  result is a fourth consecutive year of record emissions, highlighting the structural challenges in aligning global energy consumption with climate goals.”

“All major energy sources, including nuclear and hydro, hit record consumption levels (for the first time since 2006), a reflection of surging global demand,” commented Nick Wayth CEng FEI, CEO  of the Energy Institute. “No country has shaped this outcome more than China. Its rapid expansion of renewable capacity, alongside continued reliance on coal, gas, and oil, is driving global energy trends. The scale and direction of China’s energy choices will be pivotal in determining whether the  world can deliver a secure, affordable, and low-carbon energy future.”

Key Findings

Romain Debarre, Partner and Managing Director Energy Transition Institute, Kearney, stated, “Last year was another turning point for global energy, driven by rising geopolitical tensions. Energy security, resource access, and technological sovereignty are now taking priority over climate goals.  This year’s data reveals three trends that are shaping the energy landscape: energy use is rising, but patterns are shifting; electrification is rapidly accelerating; and the energy transition remains chaotic.

“We are witnessing the real dangers of regional differences and the cost of inaction in real time. Record-high GHG emissions and soaring temperatures in 2024 are a deafening wake-up call. We have the strategies, technologies, and know-how to deliver the energy transition with an integrated,  secure, and people-centred approach. Now, we must move from promises to action, at scale and at  speed.”

Wafa Jafri, Lead of Energy and Natural Resources Strategy and Partner KPMG in the UK observed: “COP28 set out a bold vision to triple global renewables by 2030, but progress is proving uneven and despite the rapid growth we have seen globally we are still not at the pace required, as energy demand continues to rise. This year’s data highlights how Europe has been facing a reality check, with rising interest rates and supply chain costs slowing progress on renewables, while China and other emerging markets continue to drive growth at scale. What’s emerging is not a uniform transition, but a disorderly one. Leaders navigating this need to look beyond headlines and towards practical delivery, regional  opportunity, and strategies built for resilience as all facets of the energy trilemma: affordability,  security of supply, and decarbonisation, compete for priority.”