The IEA (International Energy Association) has released its annual update on energy-related CO2 emissions, revealing that unsurprisingly (given increased energy demands) emissions rose in 2023 versus the year prior. This meant that global energy-related CO2 emissions grew by 1.1% last year equivalent to 410 Mt (million tonnes), to reach a new record high of 37.4 billion tonnes (Gt). However, this growth was lower than that seen in 2022, when emissions increased by 490 Mt, or 1.3% when compared with 2021[i].
Source: IEA
Last year’s slowdown in emissions growth has been attributed to a rise in clean energy, as additions of wind and solar PV capacity surged by 75% compared with 2022. This saw a record of 540 GW of global capacity added in one year. The IEA notes that on the back of Covid-19 stimulus packages there has been a significant acceleration in clean energy deployment. Between 2019 and 2023, total energy-related emissions increased by roughly 900 Mt, yet without increased deployment of solar PV, wind power, nuclear power, heat pumps, and electric cars, this growth in emissions would have been three times larger.
IEA’s executive director Fatih Birol said:
“A pandemic, an energy crisis and geopolitical instability all had the potential to derail efforts to build cleaner and more secure energy systems. Instead, we’ve seen the opposite in many economies. The clean energy transition is continuing apace and reining in emissions – even with global energy demand growing more strongly in 2023 than in 2022.”[ii]
Even so, the past year wasn’t without its challenges, as a global shortfall in hydropower generation impacted the US and China. This deficit, which was caused by droughts, drove up emissions by around 170 Mt, as fossil fuels became the alternative energy source. The IEA claims that without this loss of cleaner hydroelectric production, emissions from the global electricity sector would have fallen in 2023.
The past year saw emissions from India and China jump, with the latter adding 565 Mt to the global total in 2023. Notably, China continues to dominate global clean energy additions, however as mentioned in the previous segment, the loss of hydroelectric generation last year contributed to about one-third of its emissions growth in 2023, as the nation switched to coal to make up the shortfall.
Contrastingly, ‘advanced economies’ delivered a decline in emissions of 4.5% last year, meaning their total emissions fell to levels not seen since 1973. Further, coal demand fell back to levels last seen in 1900. The IEA states that almost two-thirds of the decline in emissions from advanced economies in 2023 occurred in the electricity sector, and for the first time, generation from renewables and nuclear reached 50% of total generation. Renewables alone accounted for 34%, whilst coal’s share plummeted to a historic low of 17%.
Whilst clean energy expansion has had a positive impact, particularly in China and developing nations, the IEA report stresses the need for international efforts to encourage and support roll-out in developing economies. The research suggests that clean energy investment in these regions will need to triple to reach $2.8trillion within ten years. Fatih Birol added:
“Commitments made by nearly 200 countries at Cop28 in December show what the world needs to do to put emissions on a downward trajectory. Most importantly, we need far greater efforts to enable emerging and developing economies to ramp up clean-energy investment”[iii]
[ii] Global CO2 Emissions Hit Record High in 2023, IEA Says - WSJ
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
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