Emissions from the global energy industry will peak in 2024

According to a new report from Norway’s DNV, emissions from the energy sector will peak this year. The peak would be driven by increased deployment of solar generation and battery storage.

The report claims that emissions can be halved by 2050 as non-hydrocarbon energy sources come to account for around 50% of the global energy mix. DNV added that this would still be insufficient to meet the Paris Agreement’s goals of stopping the global average temperature increase at 1.5 and 2 C from pre-industrial times.

According to the report, falling costs of solar power and battery storage are squeezing demand for coal and oil, a key development in reducing emissions, which reached a record high in 2023. It should be noted that this is the same year that solar installations increased. by 80%, failing to stop the increase in emissions.

Wind power is also seen as crucial to lowering emissions, with DNV seeing wind capacity grow to account for 28% of electricity generation by 2050. Offshore wind is expected to expand at an annual rate of 12%. This is despite the current challenges in growing this industry in the form of higher costs leading to delays in planned projects.

Elsewhere in the technology transition, “Sales of electric vehicles grew by 50% last year and are on track for a global share of passenger electric vehicle sales of 50% in 2031,” DNV also reported, even as the landscape of electric vehicles is quite different from last year with sales. declining European market and slowing growth in North America.

“Solar PV and batteries are leading the energy transition, growing even faster than we previously estimated,” said Remi Eriksen, group president and chief executive of DNV, quoted by Reuters.

“Peak emissions are a milestone for humanity. But now we need to focus on how quickly emissions fall and use the tools available to accelerate the energy transition,” Eriksen added.

By Irina Slav for Oilprice.com

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