IEA sees demand for oil, coal and gas peaking by 2030

The International Energy Agency (IEA) predicts that world fossil fuel demand will peak by 2030, driven by the increasing adoption of electric cars and China's transition to cleaner energy, along with slower economic growth. This forecast challenges the rationale for raising investments in fossil fuel industries.

This outlook from the IEA, which provides advice to industrialized nations, differs from the perspective of the Organization of the Petroleum Exporting Countries (OPEC), which envisions oil demand continuing to rise well beyond 2030 and advocates for significant investments in the oil sector. In the IEA's annual World Energy Outlook released on Tuesday, it is stated that peaks in demand for oil, natural gas, and coal are expected within this decade under the scenario based on existing government policies. This marks the first time such peaks have been observed.

IEA Executive Director Fatih Birol emphasized the inevitability of the global transition to clean energy, stating, "The transition to clean energy is happening worldwide, and it's unstoppable. It's not a question of 'if,' it's just a matter of 'how soon'—and the sooner the better for all of us. Governments, companies, and investors need to support clean energy transitions rather than impeding them." This forecast reflects the growing momentum toward renewable energy and the need to accelerate the shift away from fossil fuels for environmental and economic reasons.