The world is seeing a major shift in the energy sector, with renewables becoming the technology of choice in power markets, according to the International Energy Agency’s latest World Energy Outlook.

The World Energy Outlook is an annual report that details global energy trends and what possible impact they will have on supply and demand, carbon emissions, air pollution and energy access. Analysis showed that 70% of global energy investments will be government-driven, emphasising the critical role that governments will play in determining the world’s energy future.

The report found that oil markets are entering a period of renewed uncertainty and volatility while solar PV is charging forward as a rapidly growing energy source. Renewables are transforming the global power mix, with renewable generation expected to make up over 40% of the mix by 2040. While this brings major environmental benefits it does also give rise to a new set of policy challenges that must be addressed quickly by policy makers.

IEA analysis found that higher electricification in transportation, buildings and industry would lead to peak oil demand by 2030 and reduce harmful air pollutants, but would have a negligible impact on carbon emissions without stronger efforts to increase the share of renewables and low-carbon sources of power.

This report stressed the urgent need for increased investment in sustainable energy technologies if the world is to stay below the 2 degree Paris Agreement target.

More information here