Source: Kompas.com | January 20, 2025

Global demand for fossil fuels is expected to slow in 2026, according to an S&P Global report. This is because demand for fossil fuels grew less than one percent this year compared to the previous year.

Meanwhile, solar and wind power generation is expected to surge by more than 17 percent during the same period.

The report reflects a widening gap between the growth rates of traditional and renewable energy.

This is because governments and companies face pressures related to energy security, geopolitics, and climate policy, as reported by Edie, Monday (January 20, 2026).

The S&P Global report predicts global demand for fossil fuels will slow in 2026, while solar and wind energy will grow.

The report also notes that fossil fuel use has recovered after the economic downturn caused by Covid-19 and will remain a significant part of the global energy mix for decades.

At the same time, however, demand growth is slowing as energy efficiency improves and renewable energy alternatives become more available.

Energy-importing countries remain reliant on established fossil fuel trading and financing systems.

However, this dependence carries risks, particularly as trade policies become less predictable.

S&P Global also highlights that tariffs and shifting priorities, particularly involving the United States, add uncertainty to long-term energy relations.

In S&P Global Energy’s baseline scenario, renewable energy expands rapidly as countries seek to reduce exposure to volatile fuel markets.

However, the report warns that clean energy expansion carries its own dependencies and geopolitical risks. Much of the global supply chain for solar panels, wind equipment, and critical minerals remains concentrated in China.