Renewables Lead Global Energy Growth, But Carbon Emissions Hit Record High

Renewable energy sources have emerged as the primary driver of global energy supply growth in 2025, marking a significant milestone outside of economic recessionary periods. This expansion, detailed in the Statistical Review of World Energy 2026, saw total world energy supply increase by 1.7%. For the second consecutive year, all major energy sources experienced record consumption levels, fueled by rising electricity demand and global economic expansion.

Solar power was the standout performer, accounting for approximately 72% of the growth in low-carbon energy capacity. Global solar power generation rose by 30% in 2025, complemented by a remarkable 66% surge in battery energy storage capacity. These advancements underscore the increasing role of solar and battery technology in the energy transition. Global electricity demand grew by 3%, outpacing the overall energy supply growth, driven by factors such as the increasing adoption of electric vehicles, the expansion of data centers, and the energy needs of artificial intelligence technologies.

For the first time, renewables combined with hydropower surpassed coal as the world's largest source of electricity generation. Concurrently, fossil fuel-based power generation began to decline. However, this shift has not yet curbed global carbon emissions, which still rose by 1.1% in 2025. Significant regional variations exist, with U.S. carbon emissions increasing by 3.2%, largely due to a 13% rise in coal-fired power generation. In contrast, China's emissions grew by a modest 0.3%, and India's by 0.9%.

Furthermore, the report indicates that global energy efficiency improvements are falling short of targets. The energy intensity of GDP improved by only about 2%, well below the 4% annual improvement goal set at COP28. China continues to lead in solar and wind development, while India saw a nearly 24% increase in renewable energy generation alongside decreases in coal, oil, and gas power. Europe experienced about 7% growth in renewables, with the UK seeing a 37% increase in solar power generation. Energy Institute President Andy Brown highlighted the growing demand for energy and the ongoing importance of energy security, affordability, and sustainability.

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The need for energy continues to increase, so the issues of energy security, affordability, and sustainability are important.