The "phenomenal rise" of renewable energy sources will be the driving force behind the transition, according to the Paris-based agency's annual World Energy Outlook study, which was released on October 24, 2023. According to the agency, by the end of the decade, the number of electric cars on the road worldwide is expected to increase by nearly ten times, and the share of renewable energy sources in the world's energy mix will rise from 30% to nearly 50%.
China's economy is slowing down, which will reduce demand for fossil fuels. The second-biggest economy in the world and the biggest user of energy, according to the IEA, has hit a "inflection point" and its total energy demand is expected to peak in the middle of the decade. Additionally, China is emerging as a "clean energy powerhouse," accounting for more than half of global sales of electric vehicles in the previous year.
The Organization of the Petroleum Exporting Countries (OPEC), a confederation of the world's leading oil-producing countries, has called for trillions of dollars in fresh investment in the industry between now and 2045 in order to stave off a sharp increase in energy costs. However, the IEA research disputes this demand.