Global energy demand growth eased in 2025 due to a combination of milder weather, a slight dip in economic expansion, and significant improvements in how efficiently the world uses power. According to the authors of the newly released report, these factors collectively brought the growth rate down to 1.3%, which is just below the average pace seen over the last ten years.
Specifically, the researchers found that “Slower economic growth and slower growth in energy-intensive industries in some regions, lower cooling demand, and faster efficiency improvements all contributed to slower demand growth.” The study further notes that while the year remained hot, “the number of global cooling degree days, while still above the long-term average, was 6% lower than the record seen in 2024.”
In plain terms, the world did not require as much energy because the climate was less extreme than the previous year. Although 2025 was among the warmest on record, it was slightly cooler than the peak of 2024, meaning households and businesses used less electricity for air conditioning. At the same time, the global economy grew at a more modest rate—particularly in sectors like steel and cement—while new technology and better habits allowed the world to produce more value with less fuel.
The report “Global Energy Review 2026” was published by the International Energy Agency in France in April 2026. Prepared by the IEA’s Energy Modelling Office under the direction of Laura Cozzi, the comprehensive study was led by authors Alex Martinos and Thomas Spencer.
