Renewable energy production set new records in 2022, but global energy-related emissions still rose by 0.8%, according to the 72nd annual Statistical Review of World Energy.
The report, released by the Energy Institute (EI) and partners KPMG and Kearney, found that while renewable power production increased by 14% year-on-year, coal consumption hit its highest level since 2014. According to the report, the share of world energy still coming from fossil fuels remains stubbornly stuck at 82%.
“Despite further strong growth in wind and solar in the power sector, overall global energy-related greenhouse gas emissions increased again,” said Juliet Davenport, president of the UK-based global industry body Energy Institute. “We are still heading in the opposite direction to that required by the Paris Agreement.”
Overall, global energy consumption rose 1.1% while greenhouse gas emissions rose 0.8%, suggesting energy demand and emissions have decoupled as the roll-out of clean technologies accelerates. But hopes that global energy-related emissions would continue to fall post-covid are proving overly optimistic.
The report’s authors said that all aspects of the energy trilemma were put under “severe strain” in 2022, with the war in Ukraine upending assumptions about supply around the world.
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“As the world emerged from the pandemic and its impact on demand, 2022 witnessed energy markets again in crisis,” said Nick Wayth, chief executive at the EI. “That in turn precipitated a price crisis and profound cost-of-living pressures across many economies.”
A number of governments have responded to the fallout from the war in Ukraine by doubling down on decarbonisation strategies. Most notably, the US Biden administration passed the Inflation Reduction Act, which promises to generous subsidies to a raft of clean energy projects, while the EU has embraced a host of measures designed to accelerate decarbonisation and reduce reliance on imported gas.
However, Richard Forrest, global sustainability lead partner and chair of the energy transition institute at Kearney, warned more urgent action was needed from governments to drive investment in clean energy.
“The need to drive the energy transition at pace to deliver clean, affordable and secure energy has never been greater,” he said.
Key findings from the report:
- Renewable power production (excluding hydro) increased by 14% year-on-year, reaching a record level of 2.5 trillion kWh
- The largest portion of solar and wind growth was in China, accounting for about 37% and 41% of global capacity additions, respectively
- Solar and wind accounted for 84% of net electricity demand growth last year
- Coal consumption hit its highest level since 2014, as several markets responded to soaring gas prices by increasing their reliance on coal power
- Global energy consumption rose 1.1% while greenhouse gas emissions rose 0.8%
What does this mean for the future of energy?
The report’s findings suggest that the energy transition is gathering pace, but that there is still a long way to go to achieve net zero emissions by 2050. Governments need to take urgent action to drive investment in clean energy and to put in place policies that support the transition to a low-carbon future.
The report also highlights the importance of energy security, as the war in Ukraine has shown how vulnerable the world is to disruptions in energy supply. Governments need to work together to ensure that the energy transition is fair and equitable, and that no one is left behind.
The future of energy is uncertain, but the report’s findings suggest that the transition to a clean energy future is inevitable. With the right policies in place, the world can achieve net zero emissions and build a more sustainable future for all.
About the report
The Statistical Review of World Energy, first published in 1952, is a comprehensive annual report on global energy markets. After 71 years under the stewardship of oil & gas giant BP, the review was transferred to the Energy Institute (EI) in February 2023. The EI was supported by KPMG and Kearney throughout the transition.
