Geopolitical instability, policy shifts and growing demand for electricity are changing the global energy system, according to the Global Energy Perspective 2025 report published by the American consulting firm McKinsey & Company.
The report predicts that global temperature increases will range from 1.9 to 2.7 degrees Celsius by 2100, underscoring the scale of the task ahead, and the goals of the Paris Climate Agreement are becoming more distant.Global energy demand is expected to peak by 2035
McKinsey predicts that primary energy demand will grow until about 2035, reaching 10-15 percent above 2023 levels before gradually stabilizing.
Growth will be driven primarily by India and Southeast Asia, while demand in Europe, Japan and North America will stall. Electrification remains a key driver of demand, and electricity consumption will almost double by 2050 due to the expansion of electric vehicles, industrial electrification, and digitalization.
Fossil fuels are declining as renewable energy sources take the lead
Despite advances in clean energy, fossil fuels will still account for 40-55 percent of the world's primary energy by 2050, up from 64 percent in 2023.
Oil demand peaks until 2030 and then steadily declines, while natural gas remains sustainable, supporting renewable energy sources as a flexible backup source. Coal continues to decline sharply, especially in power generation, although Asia remains a key market.
