IEA report shows emissions rising as droughts hit hydropower

Using a wide range of data and analysis, the IEA reported a record level of 37.4 billion tonnes of energy-related CO2 emissions for 2023, an increase of 410 million tonnes, or 1.1 per cent. This represents a smaller increase than 2022, when emissions rose by 490 million tonnes. The full report - CO2 Emissions in 2023 – can be read here.

According to the agency, over 40 per cent of the 2023 increase can be attributed to ‘an exceptional shortfall in hydropower’, driven by extreme droughts in countries including China and the USA. With gaps in hydro generation largely plugged by fossil fuels, emissions inevitably increased. The IEA claims that without the hydro shortfall, CO2 emissions from electricity generation would have declined last year.

In better news, emissions in advanced economies saw a record fall in 2023, coupled with GDP growth. The report found this was driven by a combination of strong renewables deployment, coal-to-gas switching, energy efficiency improvements and softer industrial production. Last year also marked the first time that over half of electricity generation in advanced economies came from low-emissions sources like renewables and nuclear.