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Global Energy Review 2025: Surge in Demand and Low-Emissions Revolution

Anela DoksoBy Anela Dokso24/03/20253 Mins Read
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In 2024, global energy demand increased by 2.2%, surpassing the average growth rate of the past decade. This dramatic rise was led by a surge in electricity consumption, which increased by 4.3%, more than double the global GDP growth rate.

This unprecedented demand was fueled by record temperatures, electrification, the expansion of digital infrastructure, and the rising adoption of artificial intelligence.

Nearly all the increase in electricity demand was met by low-emissions sources, prominently solar photovoltaic (PV) technology, alongside other renewables and nuclear energy. Solar PV alone is now preventing around 1.4 gigatonnes (Gt) of annual emissions, equivalent to the total yearly emissions of France, Germany, Italy, and the UK combined. Wind and nuclear power also played significant roles, saving around 900 million tonnes (Mt) and 190 Mt of CO2 respectively. Although the reductions from electric vehicles and heat pumps were smaller, at 80 Mt and 65 Mt respectively, these figures are expected to rise as these technologies become more prevalent.

Sectoral Energy Demand Dynamics

The power sector was central to the broader rise in energy demand, impacted notably by increasing cooling needs in response to severe temperatures and the expanding energy requirements of industrial and transport electrification. The increase in electricity usage by data centers and artificial intelligence contributed to this escalation, broadening the scope of energy transformation challenges.

Oil demand in 2024 rose modestly by 0.8%, a significant slowdown from a 1.9% increase in 2023. For the first time, oil constituted less than 30% of global energy demand. Conversely, natural gas saw robust growth of 2.7%, with significant demand increase mainly from emerging economies and developing regions. Coal consumption also inched up by 1%, driven largely by power generation needs in response to extreme heat, particularly in China and India.

Emerging and developing economies accounted for over 80% of the global energy demand growth, with China’s and India’s energy appetites soaring, although rising less rapidly than in previous years. Advanced economies, after years of diminishing demand, also recorded a growth rebound, exemplified by the United States’ increase in energy consumption. Despite these increases, advanced economies saw a drop in energy-related CO2 emissions by 1.1%, primarily due to the higher deployment of renewables and nuclear energy.

Global CO2 Emissions: Contrasts and Concerns

The world’s energy-related CO2 emissions peaked at a record 37.8 Gt in 2024, marking an increase of 0.8%. This rise was less than the global GDP growth rate, thus reviving a trend of decoupling emissions from economic growth. Clean energy technologies are notably restraining emissions growth, averting about 2.6 billion tonnes of additional CO2 emissions yearly. However, the contribution of fossil fuels, particularly natural gas and coal, to emissions growth remains significant, highlighting ongoing challenges in global emissions management.

Looking forward, significant investments in renewables and technology advancements are critical to sustaining the transition to a low-carbon economy. The rapid growth of electric vehicles and the sustained expansion of renewable energy sources are poised to play pivotal roles in this transformation. As global temperatures continue to rise, driving energy demand, the imperative for a swift transition towards sustainable and efficient energy solutions becomes ever more urgent.


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