“Curtain call” for fossil fuels: IEA says Ukraine war locks in shift to renewables

Jim Regan

28 OCTOBER 2022 1:53 PM

The International Energy Agency has – for the first time – flagged demand peaks for fossil fuels in all its scenarios after acknowledging they are almost entirely responsible for the past year’s energy price hikes,

The IEA, in its 2022 World Energy Outlook, says global demand for coal will start to drop off in the next few years, followed by a peak in gas use by the end of the decade and a slow decline in oil demand as sales of electric-powered vehicles rise and investment in renewables accelerates.

It describes this as the most profound shift in energy consumption since the Industrial Revolution. And it is doubly significant because the IEA’s conservative predictions – particularly its “state policies” scenarios – over the last half century have been used a crutch by the fossil fuel industry and governments to justify ongoing investment in fossil fuels and trillions in subsidies.

The report also reveals that fossil fuels are 90 per cent responsible for electricity prices increasing, with gas alone being 50 per cent to blame, again an extraordinary admission from the IEA that would have been unthinkable a few years ago.

It found that in most affected regions, higher shares of renewables correlated with lower electricity prices, with energy-efficient homes and electrified heat providing price buffers for some consumers.

“For the first time ever, the IEA has identified that demand for fossil fuels will peak by the mid 2020s,” said Carl Tidemann, a senior researcher for Australia’s Climate Council. “This is the curtain call for coal, oil and gas.”

The energy crisis triggered by Russia’s invasion of Ukraine has the potential to hasten the transition to a more sustainable and secure energy system, with the IEA report projecting a 50% rise in global clean energy investment to over US$2 trillion a year by 2030.

“The IEA report has made it abundantly clear that fossil fuels are the root cause of this problem, particularly gas, which is the most expensive form of power in Australia, ” said Andrew Stock, climate councillor and a past director of Australia’s Clean Energy Finance Corp.

“This global report points to an obvious, affordable solution — a rapid transition to renewable energy, which would be a win for households, businesses, jobs and the climate,” he said.

What has not changed, the report says, is that the heaviest burden continues to fall on poorer households where a larger share of income is spent on energy.

https://reneweconomy.com.au/curtain-call-for-fossil-fuels-iea-says-ukraine-war-locks-in-shift-to-renewables/amp/