Global demand for oil and coal is showing signs of reaching a long-anticipated peak as growth in their use slowed significantly throughout 2025, according to the authors of the newly released report. While consumption of both fuels reached new heights, the pace of that increase has dropped to near-zero, signaling a shift toward a more permanent leveling off in the world’s fossil fuel appetite.
The study finds that the recent trend provides “further evidence of a structural deceleration in oil markets” and points out that “global coal demand growth [has been] slowing each year since 2021,” with coal-fired power generation remaining “basically flat” in 2025.
In simpler terms, the world is moving away from its old habit of using more and more fossil fuels every year. Because more people are switching to electric cars and countries are building record amounts of solar and wind farms, the need for oil and coal is no longer surging. Instead, the amount used is essentially staying at the same level, suggesting that we are entering a new era where fossil fuel use stops growing and eventually starts to fall.
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.
