Global demand for fossil fuels will peak in 2023, an influential thinktank has predicted, posing a significant risk to financial markets because trillions of dollars’ worth of oil, coal and gas assets could be left worthless.
Explosive growth in wind and solar will combine with action on climate change and slowing growth in energy needs to ensure that fossil fuel demand peaks in the 2020s, Carbon Tracker predicted.
The projection is much more bullish than estimates by the global energy watchdog and oil and gas companies, which mostly expect demand to peak in the mid-2030s. Coal reached its peak in 2014.
Kingsmill Bond, new energy strategist at Carbon Tracker, said: “Fossil fuel demand has been growing for 200 years, but is about to enter structural decline. Entire sectors will struggle to make this transition.”
The group, which popularised the notion of a carbon bubble – where fossil fuel assets lose their value in the switch to a low-carbon economy – said the findings spelled disruption for energy firms.
Read the whole article in The Guardian.