Peak fossil fuel demand is coming, IEA chief Birol says

Seatoday.com, Jakarta China has significantly impacted the global energy system over the past decade, according to Fatih Birol, Executive Director of the International Energy Agency (IEA). Birol attributed the significant increase in global fossil fuel consumption to China, and the country is now undergoing a slowdown and restructuring. Fatih Birol said that there was one country behind the substantial increase in global fossil fuel consumption over the last decade: China.

This is one of two significant drivers behind the IEA's belief that global demand for fossil fuels will peak by 2030. The analysis reveals that demand for oil, coal, and natural gas is expected to peak before the end of this decade, with fossil fuels' share in the world's energy supply dropping to 73% by 2030.

China has been accounting for over 50% of global energy demand growth and 85% of the rise in energy sector CO2 emissions in the past decade. The IEA's report also notes that China's economy is shifting away from industries such as steel, cement production, railways, and infrastructure, which are all in decline.

“So China’s demand for fossil fuels will be much less than [the] last 10 years,” he added. “And this is the second driver [as to why] we believe that we will see the fossil fuel peak this decade.”

The other major driver behind the fossil-fuel peak is clean energy, according to Birol, including the increasing popularity of electric cars and the growing importance of renewables in electricity generation.

Birol is not alone in highlighting a major potential shift in China’s relationship with fossil fuels.

During a recent energy conference, Fereidun Fesharaki, chairman of Facts Global Energy, predicted that China’s demand for oil will peak in the next three to five years. (JRF)

BUSINESS