IEA WORLD ENERGY OUTLOOK 2023 (Syllabus: GS Paper 3 – Env and Eco)

Context: Recent data from the International Energy Agency (IEA) in the latest World Energy Outlook report predicts that global emissions are on track to raise temperatures by around 2.4 degrees Celsius under existing policy settings.

Key Points

• The report’s standout statement is the anticipated peak in fossil fuel demand by the end of this decade.
• Noting positive shifts towards Net-Zero commitments and clean energy, it highlighted the urgent need for increased investment, diversified energy sources, and geopolitical considerations in the global energy transition.
• For India, it commended energy progress but underscored the continued rise in fossil and space cooling demand.
• For the first time, the IEA projected that fossil fuel demand will peak by the end of this decade under the STEPS scenario.

Areas of Concern

• There is a need to scale up clean energy investment, particularly in emerging markets and developing economies outside of China, as these regions have witnessed stagnant investment since 2015.
• The report emphasised the importance of ensuring a balanced mix of investments, rather than relying solely on solar, wind power, and electric vehicles.
• The potential for energy and mineral security concerns as the sector transforms globally, leading to supply concentration and critical mineral shortages for clean energy technologies.

International Energy Agency

• About: The IEA is at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries provide secure and sustainable energy for all.
• Located: Paris
• Established: In 1974
• Members: 30 member countries, 8 association countries, and 3 accession countries

o India became an Associate Member of IEA in 2017.

• Four main areas of focus: Energy security, economic development, environmental awareness and engagement worldwide.
• Reports published by IEA: World Energy Outlook, World Energy Balances, Energy Technology Perspectives, World Energy Statistics and Net Zero by 2050.