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New report raises concern about surge in country's dirty energy usage: 'We hope that this report will help governments, world leaders, and analysts move forward'

"The progress of the transition is slow, but the big picture masks diverse energy stories playing out across different geographies."

"The progress of the transition is slow, but the big picture masks diverse energy stories playing out across different geographies."

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Global dirty energy consumption was at its highest in 2023, and one country showed a concerning increase, hitting an all-time high, as reported by Reuters. 

What's happening?

The Energy Institute, in collaboration with consulting firms KPMG and Kearney, released the 2024 Statistical Review of World Energy report on June 20, with full-year data from 2023. The report showed that the global use of fossil fuels — dirty energy sources such as oil, coal, petroleum, and natural gas — was at a record high. Reuters reported that usage "exceeded 40 gigatonnes [44 gigatons] of CO2 for the first time."

China, "the world's largest consumer of coal and second largest consumer of oil," as described by the Energy Institute, saw its use of dirty energy rise 6% to a new high, according to Reuters.

This could be surprising in large part because China also accounts for over half of the world's new affordable energy sources, such as wind and solar. 

"China adding more renewables than the rest of the world put together is remarkable," said Simon Virley of KPMG.

Why is this increase important?

The report highlighted that the relationship between dirty energy and renewable energy is not entirely reciprocal, where an increase in one does not equate to a decrease in another.

This is most noteworthy in China. At the end of 2022, China announced a rollback of COVID-19 guidelines, leading to a return to regular transportation and employment. Despite accounting for 55% of all renewable energy generated, per Reuters, with nearly 63% of all wind and solar energy capacity increase, China still produced a shocking increase in dirty energy usage. The country owned the largest refining capacity of oil and was one of the leading countries in coal usage, along with India.

"In a year where we have seen the contribution of renewables reaching a new record high, ever-increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged," Virley said.

The demand for dirty energy was a driving force in seeing global temperatures rise by 1.5 Celsius (2.7 Fahrenheit) for a 12-month period, per Reuters. This level of temperature increase is the threshold by which countries aim to abide by the Paris Agreement to lessen the impact of extreme weather disasters, including drought and flooding.

What's being done about the increase in dirty energy consumption?

The report itself is an in-depth look into the types of energy being used globally and where governments can adapt to renewable energy.

"We hope that this report will help governments, world leaders, and analysts move forward, clear-eyed about the challenge that lies ahead," Romain Debarre of Kearney said.

In China, "intense policy focus and technological innovation" is helping the country increase its focus on renewable energy, according to Remi Eriksen, group president and CEO of Det Norske Veritas. In addition to its large share of the increase in solar and wind energy, China also paves the way for innovation in other technology running on affordable energy, including high-speed rails and electric vehicles, such as one unveiled by tech giant Xiaomi.

However, Reuters reported the complete phasing out of dirty energy appears to be "unrealistic" for China. The DNV said that, by 2050, China will still rely on it for 40% of its energy.

"The progress of the transition is slow, but the big picture masks diverse energy stories playing out across different geographies," said Dr. Nick Wayth, chief executive of the Energy Institute. "This year we provide additional visualizations to bring these contrasts to life — from advanced economies where we see signs of demand for fossil fuels peaking, to economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth."

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