IEA Warns Renewable Energy Boom Will End Fossil Fuel Era

The transition away from fossil fuels is now “inevitable,” according to the International Energy Agency (IEA), as cheaper renewable energy projects surge worldwide. The agency’s flagship annual report predicts more renewable energy capacity will be built in the next five years than in the past 40, driven by rising demand for electricity from electric vehicles, heating, cooling, and AI data centres.

Nuclear power is also experiencing a revival, with tech companies seeking reliable low-carbon energy for their expanding data infrastructure. Global investment in data centres is expected to reach $580 billion in 2025, surpassing spending on global oil supply.

The IEA report highlights that renewables will outpace all other major energy sources, with a surge in affordable solar projects across the Middle East and Asia. Even with US policies under former President Trump slowing domestic renewable adoption, global growth remains robust.

Experts say the shift offers a more secure, efficient, and cost-effective energy system for fossil fuel-importing countries, while delays in the transition contribute to higher global temperatures and continued reliance on inefficient fossil fuel consumption.

Climate campaigners urge world leaders at Cop30 in Brazil to accelerate the phase-out of fossil fuels and increase climate finance. Mariana Paoli of Christian Aid said the report underscores the urgency: “The fossil fuel era is ending, yet governments are still dragging their feet on the clean energy systems the world needs.”

David Tong of Oil Change International added that no single country can halt the global energy transition, calling for fast, fair, and funded pathways to a low-carbon future.