BAKU, Azerbaijan, October 31. The global energy system is entering a new era dominated by clean electricity and electrification, according to Rystad Energy’s annual Global Energy Scenarios (GES) 2025 outlook, Trend reports.
The study highlights rapid growth in renewable energy, with clean electricity expanding from 9% of primary energy in 2015 to over 14% in 2025, and wind and solar capacity additions for 2024–2025 expected to exceed 700 gigawatts (GW).
Rystad Energy outlines three key steps for reducing emissions: cleaning up and expanding the power sector, electrifying transport, buildings, and industry, and addressing residual fossil fuel emissions through carbon capture or low-carbon substitutes. The report suggests that achieving a 1.9-degree Celsius trajectory by 2040 is increasingly likely as hybrid energy systems take hold.
Despite the rise of renewables, oil and gas are expected to remain resilient in the near term. Oil demand may peak by the early 2030s, while gas growth will slow by the end of the decade. “The energy transition is fast enough to alter the growth profile of fossil fuels, but not fast enough to deeply disrupt their dominance by 2040,” said Jarand Rystad, CEO of Rystad Energy.
The report also projects that global CO₂ emissions will peak around 2026 before gradually declining, driven by rapid renewable deployment and electric vehicle adoption. However, current nationally determined contributions (NDCs) are still insufficient to limit warming to 1.5 degrees, underlining the need for stronger climate action.