The IEA said China's electric vehicle shift in particular could disrupt global oil markets

Half of the world's electric cars on the road already come from China. By 2030, 70 percent of new car sales in China are expected to be electric vehicles. Thanks to the massive addition of new wind and solar power, China has met its climate change goals, with emissions peaking and starting to decline by the end of the decade.

According to the IEA, however, the expansion of clean energy comes with an increase in demand for electricity, including that produced by burning coal. “This means that while we have seen record growth in clean energy installations and additions, emissions continue to rise,” said Lori Milevarta, principal analyst at the think tank Energy and Clean Air Research Center.

The report shows that electricity demand is growing faster than expected, driven by light industrial energy consumption, electricity mobility, cooling and data centers, and artificial intelligence. The outlines of transitioning heating, vehicles and some industries to electricity are beginning to emerge.

The IEA said that globally, the growing use of electric vehicles, as well as the development of wind and solar power, will ensure peak demand for coal, oil and gas within a decade, while greenhouse gas emissions will also peak and decline. Scientists have long warned that the world must rapidly reduce greenhouse gas emissions to stave off the worst effects of climate change.

As the rapid change of power in China plays a major role in disrupting the oil market, oil companies find that they can sell their products to India. The IEA projects that India will increase its demand by about 2 million barrels of oil per day by 2035, potentially providing a lifeline for oil producers to offset slowing growth in other regions.

The Energy Agency warned that the image meant “the world is still far from the trajectory towards the net zero target”. Because over the next few years, global climate pollution must decrease every year to maintain a good chance of maintaining the Earth's climate in its current state.

The 2015 Paris Agreement aimed to limit global warming to an increase in average global temperatures of 1.5 degrees Celsius (2.7 degrees Fahrenheit) compared to 1800. However, according to the report, the world is currently on track to increase temperatures by the end century by an average of 2.4 degrees Celsius (4.32 degrees Fahrenheit).

The reports show that emissions will not fall quickly and will decline gradually after peaking unless action is taken quickly, said Bill Hare, CEO of Climate Analytics.

The IEA is an intergovernmental organization based in Paris. The World Energy Outlook is published annually and provides policymakers and analysts with information on global energy trends and policy implications.