Global energy-related carbon dioxide emissions are forecast to increase by 1.5 billion tonnes in 2021 – the second-largest increase in history, the latest IEA report shows.
This would be the biggest annual rise in emissions since 2010, during the carbon-intensive recovery from the global financial crisis.
The IEA’s Global Energy Review 2021 estimates that CO2 emissions will increase by almost 5 percent this year to 33 billion tonnes, based on the latest national data as well as real-time analysis of economic growth trends and new energy projects.
The driver is coal demand, which is set to grow by 4.5 percent, surpassing its 2019 level and approaching its all-time peak from 2014, with the electricity sector accounting for three-quarters of this increase.
“Unless governments around the world move rapidly to start cutting emissions, we are likely to face an even worse situation in 2022. The Leaders Summit on Climate hosted by US President Joe Biden this week is a critical moment to commit to clear and immediate action ahead of COP26 in Glasgow,” Fatih Birol, the IEA Executive Director said.
Energy demand is set to increase by 4.6 percent in 2021 – led by emerging markets and developing economies. Demand for all fossil fuels is on course to grow significantly in 2021, with both coal and gas set to rise above their 2019 levels. Oil is also rebounding strongly but is expected to stay below its 2019 peak, as the aviation sector remains under pressure.
The expected rise in coal use dwarfs that of renewables by almost 60 percent, despite accelerating demand for renewables. More than 80 percent of the projected growth in coal demand in 2021 is set to come from Asia, led by China. Coal use in the United States and the European Union is also on course to increase but will remain well below pre-crisis levels.
Electricity generation from renewables is set to increase by over 8 percent in 2021, accounting for more than half of the increase in overall electricity supply. The biggest contribution to that growth comes from solar and wind, which are on track for their largest annual rise in history.
Electricity generation from wind is projected to grow by 275 terawatt-hours, or around 17 percent, from last year. Electricity generation from solar PV is expected to increase by 145 terawatt-hours, up almost 18 percent from last year. Their combined output is on track to reach more than 2 800 terawatt-hours in 2021.
Renewables are set to provide 30 percent of electricity generation worldwide in 2021, their biggest share of the power mix since the beginning of the Industrial Revolution and up from less than 27 percent in 2019. China is expected to account for almost half of the global increase in electricity generation from renewables, followed by the United States, the European Union and India.