Global energy demand grew at a faster-than-average pace in 2024 as the consumption of electricity rose around the world – with increased supply of renewables and natural gas covering the majority of additional energy needs, according to a new IEA report.
The “Global Energy Review 2025” report by the International Energy Agency (IEA), finds that global energy demand rose by 2.2% last year – lower than GDP growth of 3.2% but considerably faster than the average annual demand increase of 1.3% between 2013 and 2023. Emerging and developing economies accounted for over 80% of the increase in global energy demand in 2024.
The expanding supply of low-emissions sources covered most of the increase in global electricity demand in 2024. The amount of new renewable power capacity installed worldwide rose to around 700 gigawatts, setting a new annual record for the 22nd consecutive year.
Furthermore, nuclear power capacity additions reached their fifth highest level in the past three decades. As a result, 80% of the increase in global electricity generation in 2024 was provided by renewable sources and nuclear, which together contributed 40% of total generation for the first time. The supply of natural gas-fired generation also increased steadily to cover rising electricity demand.
Key findings of the report
- Global energy demand grew by 2.2% in 2024 – faster than the average rate over the past decade. Demand for all fuels and technologies expanded in 2024
- Emerging and developing economies accounted for over 80% of global energy demand growth.
- Advanced economies also saw a notable return to growth in energy demand after several years of declines, with demand rising by almost 1%.
- Global oil demand growth slowed markedly in 2024, in line with the IEA’s forecast. Oil’s share of total energy demand fell below 30% for the first time ever.
- Natural gas saw the strongest demand growth among fossil fuels.
- Global coal demand rose by 1%.
- Global electricity consumption rose by nearly 1 100 terawatt-hours (TWh) in 2024, more than twice the annual average increase over the past decade.
- Rising global electricity use was driven by factors such as increasing cooling demand resulting from extreme temperatures, growing consumption by industry, the electrification of transport, and the expansion of the data centre sector.
- In 2024, 80% of the growth in global electricity generation was provided by renewable sources and nuclear power.
- In 2024, over 7 GW of nuclear power capacity was brought online, 33% more than in 2023.
- Growth in energy-related carbon dioxide (CO2) emissions continues to decouple from global economic growth. Emissions growth slowed to 0.8% in 2024, while the global economy expanded by more than 3%.
- Energy intensity improvements continued to slow in 2024.
Energy sector carbon emissions reached a new record in 2024
Total energy-related CO2 emissions increased by 0.8% in 2024, hitting an all-time high of 37.8 Gt CO2. This rise contributed to record atmospheric CO2 concentrations of 422.5 ppm in 2024, around 3 ppm higher than 2023 and 50% higher than pre-industrial levels. In 2024, CO2 emissions from fuel combustion grew by around 1% or 357 Mt CO2, while emissions from industrial processes declined by 2.3% or 62 Mt CO2. Emissions growth was lower than global GDP growth (+3.2%), restoring the decades-long trend of decoupling emissions growth from economic growth, which had been disrupted in 2021.
Natural gas emissions rose by around 2.5% (180 Mt CO₂) in 2024, making it the largest contributor to global carbon emissions growth. This increase was driven by higher consumption in China, the United States, the Middle East, and India.
Industry and power sectors drove higher consumption
Natural gas continued to displace oil and oil products in various sectors, supported by policies, regulations, and market dynamics. In the Middle East, oil-to-gas switching in the power sector continued in 2024. In road transport, the rapid scaling up of natural gas-powered trucks in China – with record sales in 2024 – contributed to lower diesel demand there. The use of LNG as a bunkering fuel is also expected to increase amid more stringent emissions regulations for shipping.
The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas. And the strong expansion of solar, wind, nuclear power and EVs is increasingly loosening the links between economic growth and emissions.
…said Fatih Birol, Executive Director, IEA.
Meanwhile, oil demand grew more slowly, rising by 0.8% in 2024. Oil’s share of total energy demand fell below 30% for the first time ever, 50 years after it peaked at 46%. Sales of electric cars rose by over 25% last year, with electric models accounting for one in five cars sold globally.
In addition, global coal demand rose by 1% in 2024, half the rate of increase seen the previous year. According to the report, intense heatwaves in China and India – which pushed up cooling needs – contributed more than 90% of the total annual increase in coal consumption globally, highlighting the major impacts extreme weather can have on energy demand patterns.
However, the report concludes that despite the increase in emissions, clean energy technologies are making a difference. The rapid deployment of five key clean energy technologies – solar PV, wind power, nuclear power, electric cars, and heat pumps – from 2019 to 2024 avoided annual fossil fuel energy demand of more than 30 exajoules (EJ). This is equivalent to 6% of total global fossil fuel demand in 2024, or more than the combined total energy demand of Japan and Korea last year.
