
Fossil Fuel Use and Emissions Reach Record Levels in 2023, According to Report by Reuters
By Robert Harvey
LONDON (Reuters) – In 2023, global fossil fuel consumption and energy-related emissions reached unprecedented levels, according to the latest Statistical Review of World Energy report. This occurred even as the share of fossil fuels in the global energy mix saw a slight decline compared to the previous year.
The persistent demand for fossil fuels, despite an increase in renewable energy sources, poses a challenge for transitioning to lower-carbon energy solutions. This is particularly concerning as global temperatures rise, approaching the critical threshold of 1.5 degrees Celsius, beyond which extreme weather events such as droughts and floods are expected to intensify.
Romain Debarre from consultancy Kearney expressed hope that the report would prompt governments and leaders to confront the challenges ahead with clarity.
2023 marked the first full year of altered Russian energy flows away from Western markets following the invasion of Ukraine in 2022 and was also the first without significant restrictions related to the COVID-19 pandemic.
According to the report, overall global primary energy consumption reached a record high of 620 Exajoules (EJ), with emissions surpassing 40 gigatonnes of CO2 for the first time.
Simon Virley from KPMG noted that although renewables set new records, the ever-increasing global energy demand meant the proportion derived from fossil fuels remained nearly unchanged.
The report highlighted differing trends in fossil fuel usage across various regions. In Europe, the share of fossil fuels in the energy mix dipped below 70% for the first time since the industrial revolution.
Energy Institute Chief Executive Nick Wayth stated that advanced economies seem to be reaching peak demand for fossil fuels, in contrast to countries in the Global South, where economic growth and improved living standards continue to drive fossil fuel consumption.
Released by the Energy Institute in collaboration with KPMG and Kearney, the report continues the tradition established since 2023, taking over from BP, which produced it for decades.
In 2023, fossil fuels accounted for nearly all energy demand growth in India, while in China, usage surged 6% to set a new record. Notably, China also contributed over half of global renewable energy generation additions last year.
Key Insights from the 2023 Report:
Consumption:
- Global primary energy demand increased by 2% from 2022, reaching 620 EJ.
- Fossil fuel consumption rose by 1.5% to 505 EJ, making up 81.5% of the total energy mix, a minor decrease of 0.5% from 2022.
- No European country increased fossil fuel use in 2023.
- Electricity generation increased by 2.5%.
- Renewable generation (excluding hydro) surged 13% to a record 4,748 terawatt-hours (TWh).
- Renewables (excluding hydro) accounted for 8% of the overall energy mix, up from 7.5% in 2022. Including hydro, renewables made up 15% of the global mix.
Oil:
- Oil consumption surpassed 100 million barrels per day (bpd), marking the first occurrence of this milestone after a 2% increase year-on-year.
- Non-OPEC+ producers contributed to supply growth, with U.S. output up by 9%.
- China became the largest oil refining nation in 2023, with a capacity of 18.5 million bpd, although its refining volume utilization lagged behind the U.S.
- Global gasoline consumption reached 25 million bpd, surpassing pre-pandemic levels.
- Biofuels production increased by 8% to 2.1 million bpd in 2023, mainly driven by the U.S. and Brazil.
Natural Gas:
- Global gas production and consumption remained stable in 2023.
- LNG supply rose nearly 2% to 549 billion cubic meters (bcm).
- The U.S. surpassed Qatar to become the top global LNG supplier after a 10% production increase.
- Total European gas demand fell by 7% in 2023, with Russia’s share of the supply plummeting to 15%.
Coal:
- Coal consumption reached a new record high of 164 EJ, rising 1.6%, driven primarily by demand from China and India.
- India’s coal usage overtook that of Europe and North America combined.
- U.S. coal consumption dropped by 17% in 2023, reflecting a 50% decline over the past decade.
Renewables:
- The growth in renewable generation was propelled by increased wind and solar capacity, with additions rising by 67% compared to 2022.
- Renewables accounted for 74% of net growth in overall power generation.
- China constituted 55% of all renewable generation enhancements in 2023 and was responsible for 63% of new global wind and solar capacity.
Emissions:
- Emissions rose by 2% in 2023, exceeding 40 gigatonnes.
- Notably, emissions increased despite a slight decline in the fossil fuel share of the energy mix due to a rise in oil and coal usage and steady natural gas consumption.
- The report highlights that energy-related emissions have surged by 50% since 2000.