China's EV shift, in particular, could disrupt global oil markets, IEA says world news

China is already responsible for half of the electric cars in circulation in the world. By 2030, it is estimated that 70% of new car sales in China will be electric. With massive additions of new wind and solar power, China converged on climate change targets, seeing emissions peak and begin to decline by the end of the decade.

According to the IEA, the expansion of clean energy is, however, occurring alongside increased demand for electricity, including energy produced by burning coal. “This means that even though we have seen record increases in clean energy installations and additions, emissions continue to rise,” said Lori Milevarta, principal analyst at the think tank Center for Energy and Clean Air Research.

Electricity demand is growing faster than expected, driven by light industrial consumption, electric mobility, refrigeration, data centers and AI, the report says. Plans are beginning to emerge to switch heating, vehicles and some industries to electricity.

Globally, the IEA said the growing adoption of electric vehicles, as well as the expansion of wind and solar energy, will ensure peak demand for coal, oil and gas within a decade, while carbon emissions will also peak and decline. . Scientists have long warned that the world must quickly reduce greenhouse gas emissions to avoid the worst effects of climate change.

As China's rapid energy transition plays a major role in disrupting the oil market, oil companies are finding that they can sell their products to India. The IEA forecasts that India will add about 2 million barrels of oil per day to its demand by 2035, potentially offering a lifeline for oil producers to offset slowing growth in other regions.

The Energy Agency warned that the situation means that “the world is still far from a trajectory aligned with its net zero target”. Because in the coming years, global climate pollution must decrease every year to preserve a good opportunity to maintain Earth's climate as it is now.

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

Reports show that emissions will not decline quickly and will gradually decline after reaching their peak 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 is considered by policymakers and analysts as a source of global energy trends and policy implications.