Electricity is a vital part of modern life, and its demand is increasing as the world population grows and living standards improve. However, most
by burning fossil fuels like coal and natural gas, which releases huge amounts of planet-warming greenhouse gases (GHG) into the atmosphere when combusted. Globally, the power industry is the
- the principal GHG contributing to global warming. Industry experts agree that the global energy system requires a dramatic transformation and a reduced reliance on fossil fuels if global average temperatures are to be limited to well below 2⁰C above pre-industrial levels.
Global power sector emissions trends
Global power sector emissions increased by 1.3 percent in 2022 to reach a record high of 12.45 billion metric tons of carbon dioxide equivalent (GtCO₂e). Asia accounted for approximately 61 percent of this total, with emissions from the world’s most populous region soaring over the past two decades. This growth has been primarily driven by the rapid economic growth of China. Since 2000,
emissions from China's power system have risen five-fold to 4.7 GtCO₂e in 2022, accounting for almost 40 percent of global power sector emissions. The U.S. and the EU were the two biggest contributors to electric power emissions at the turn of the century, but both have cut emissions by roughly 22 percent since then.
Most polluting electricity source
All electricity generation technologies emit CO₂ and other greenhouse gases during their lifecycle, but the
majority of the sector’s emissions come from coal-fired power plants. Currently, 34 percent of the global power supply is produced by coal, but this source is responsible for almost 70 percent of electricity-related emissions. This figure rises to more than 90 percent in coal-dependent countries like China and India. Coal is the dirtiest fossil fuel, with average
lifetime carbon emissions far higher than other fuels. In fact, coal-fired electricity accounted for 20
percent of global GHG emissions in 2020, making it the single largest emitter.
A net zero global power sector
The global power sector needs to decarbonize, and this transition has already begun. Electricity is now cleaner than ever before, with solar and wind hitting a record high of 12 percent of global electricity generation in 2022. The expansion of these renewables has led experts to believe that
power sector emissions may have peaked in 2022, ushering in a new era of fossil fuel decline. But while the power sector could reach net-zero emissions before any other sector, there are still numerous
challenges to overcome that impact the energy transition and carbon-neutral pledges. For example, all
coal-fired power plants need to close by at least 2040, but countries such as China have approved plans for new coal plants.
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