Changing the Global Energy Landscape

The global energy landscape is going through a big change, and the emphasis on the consumption of sustainable energy sources has grown in recent years. More and more countries are looking at new ways to develop sustainable energy to ensure energy security for their respective nations. According to the International Energy Agency , the total power capacity from renewable sources is expected to increase by 50% from 2019 to 2024. This marks a big change in how we consume energy. The landscape of energy consumption has changed a few times in the past as well.?

At the dawn of the 19th century, coal was the hottest commodity, and it powered everything from locomotives to the industrial revolution in Great Britain. Then, in 1908, oil was discovered in Iran, and the world of energy changed forever. Ever since petroleum has been the single most important commodity in the energy market. However, as the use of electricity increased and started powering industries, factories, and homes around the world, the consumption of coal and other fossil fuels to generate electricity increased even further.??

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As the 21st century began, the environmental effects of using coal and other non-renewable sources of energy became clear as day. Moreover, the fear of energy sources running out forced countries to look for new and sustainable sources of energy. According to a term called Peak Oil , due to the increasing use of oil in automobiles, the global production of oil will see an irreversible decline after some point in time. Many experts believe that peak oil production will happen from the 2000s to 2030, and after that, the production of oil will gradually decrease.

The term Peak Oil was made famous by the 39th President of the US, Jimmy Carter , in 1977 when he addressed the nation on energy and said, “Look back into history to understand our energy problem. Twice in the last several hundred years, there has been a transition in the way people use energy. Because we are now running out of gas and oil, we must prepare quickly for a third change to strict conservation, and to the renewed use of coal, to permanent renewable energy sources like solar power.”

The final nail in the coffin came in 2015, after the finalisation of the Paris Agreement by 196 countries. According to the agreement, all 196 countries had agreed to reach carbon neutrality by 2050. However, this required an immediate shift in global energy consumption from fossil fuels to lower-carbon emission options.?

Global Energy Shift Today

Almost every major country on the planet is working towards decreasing their carbon footprint. According to the International Energy Agency, the global annual investment in clean energy sources has increased from less than $1 trillion in 2015 to almost $1.8 trillion in 2023. While the global annual investment in fossil fuels decreased from $1.3 trillion in 2015 to around $1.1 trillion in 2023, governments around the world have invested around $1.34 trillion in clean energy since the pandemic in 2020. Between 2010 and 2021, the US generated 13% less energy from fossil fuels, and the energy provided by renewable sources like solar and wind saw a 250% increase in the country.?

One of the main consumers of fossil fuels is automobiles around the world. This is a big change that needs to happen to ensure carbon neutrality by 2050. The first step towards this change is the growing EV trend. The global electric car stock went from 5 million in 2018 to more than 25 million in 2023. Not only electric cars, but automobile manufacturers have made hydrogen, CNG, and LPG engines as well to try and keep the emissions down.?

India has made strides in terms of CNG vehicles. The country is producing more than 75,000 CNG vehicles in a month. The NCR region in India has made the use of CNG public transportation mandatory to deal with high carbon emissions in the region. However, the country still uses 85% of fossil fuels for its energy needs. For this reason, the Indian government is giving out incentives to make electric and green-fuel cars in the country. India’s Minister of Road Transport and Highways, Nitin Gadkari, revealed a new road map in a Rajya Sabha session based on EVs, biofuels, and alternative fuels. By following this, India plans to cut its carbon emissions by 50% in the next decade.?

The global energy landscape is constantly changing with only one thing in mind: to learn about carbon neutrality in the first half of the century to ensure a clean and sustainable future.?