In 2023, wind and solar energy sources emerged as the primary drivers of global energy growth, surpassing oil and coal, but rising coal and oil use led to record high carbon emissions. Despite challenges, private investments in renewables are on the rise, signalling continued sector growth amidst the dominance of fossil fuels.
In 2023, wind and solar energy sources combined added more new energy to the global mix than any other source, marking the first time in history this has occurred, according to a Carbon Brief analysis of newly released data. This development comes amidst record global energy demand, which saw increased use of coal and oil, reaching new highs and pushing global carbon dioxide (CO2) emissions to another record level, according to the Energy Institute’s Statistical Review of World Energy 2024.
Key points from the report indicate that global energy demand reached an all-time high of 620 exajoules (EJ) in 2023, with a 2.0% annual growth rate. Wind and solar energy together contributed 4.9EJ, or 40% of the overall increase in energy demand, surpassing oil’s 39% share and coal’s 20%. Nevertheless, the significant increase in oil and coal use contributed to the continued rise in global CO2 emissions.
The report highlights that global electricity generation from coal increased by 1.8% to a new high of 10,513 terawatt hours (TWh), despite wind and solar adding a record 537TWh of new generation. This surge in fossil fuel use drove global emissions from fossil fuels, industrial processes, methane, and flaring to exceed 40 billion tonnes of carbon dioxide equivalent (GtCO2e) for the first time.
China and India saw significant growth in emissions, with China’s emissions rising by 6% year-on-year, accounting for 85% of the net global increase, while the U.S. and EU managed to reduce their emissions.
Private capital has surged into renewable energy investment, with transactions in the sector nearly reaching $15 billion in 2023, the highest in five years. Major investors such as KKR & Co., Brookfield Asset Management, and EQT AB are actively investing in renewable platforms to expand their capacity and accelerate energy transitions.
Despite challenges like project delays and supply chain disruptions, the renewable energy sector is poised for continued growth, driven by strong demand from sectors like data centers. Notably, fossil fuels still met 81.5% of global primary energy demand, although this represents a slight decrease compared to previous years.
The long-term shift towards renewable energy is underscored by significant financial commitments and increasing capacity additions. However, the growing fossil fuel consumption in regions like China and India poses challenges to reducing global emissions swiftly.
