The International Energy Agency (IEA) recently released a report highlighting the impact of electric vehicles (EVs) on global oil demand and emissions. According to the report, the sale of electric vehicles accounted for one-fifth of all new cars sold worldwide last year, resulting in a significant reduction in oil demand.
The report also stated that without the adoption of EVs, solar, wind, and nuclear energy, global emissions over the past five years would have tripled. This underscores the crucial role that clean energy technologies, including EVs, play in mitigating climate change and reducing greenhouse gas emissions.
While energy-related emissions increased in 2023, the rise was less significant than in previous years due to the expansion of clean energy technologies. Emissions increased by 1.1%, reaching a record 37.4 billion tonnes. Severe droughts in the U.S., China, and other economies led to a decrease in hydropower, resulting in a rise in emissions as countries turned to fossil fuels to make up for the shortfall.
Despite these challenges, advanced economies experienced a record drop in emissions in 2023, thanks to increased renewables deployment, coal-to-gas switching, energy efficiency improvements, and a decline in industrial production. The growth in clean energy between 2019 and 2023 was twice that of fossil fuels, with wind and solar deployment significantly reducing the demand for fossil fuels.
The increase in EVs on the roads has also played a significant role in preventing oil demand from exceeding pre-pandemic levels. The IEA predicts a peak in global oil demand by 2028, attributing this to the rise of EVs. This shift towards clean energy sources underscores the need for oil producers to adapt to the accelerating clean energy transition.
Despite the growth of EVs, the U.S. still faces a “dirty grid” problem, with 60% of its electrical power derived from non-renewable fossil fuels. However, the increasing adoption of solar power is expected to help address this issue and further reduce emissions.
Overall, the IEA’s report highlights the importance of clean energy technologies, including electric vehicles, in reducing oil demand, emissions, and mitigating the effects of climate change. The transition to clean energy sources is crucial in building a sustainable and resilient energy system for the future.
