The way the world is powered will change dramatically by the end of the decade, thanks to surging demand for electric vehicles and clean Energy technologies, a new report from the International Energy Agency says.

The IEA projects that by 2030: 

• Nearly half of the world’s electricity supply will come from renewable energy.

• Ten times as many electric cars will be on the road.

• Heat pumps and other electric heating systems will outsell fossil fuel boilers.

• There will be three times as much investment in new offshore wind projects than coal- and gas-fired power plants.

• Solar energy will generate more electricity than the entire U.S. power system does currently.

The projections, which are based on government policies that are already in place worldwide, are part of the IEA’s annual World Energy Outlook, released Tuesday. The Report builds on previous IEA analyses on the rise of renewable energy.

The growth in renewables has major implications for fossil fuels, with peaks in global demand for coal, oil and natural gas now expected to come this decade.

“The Transition to clean energy is happening worldwide and it’s unstoppable,” Fatih Birol, the IEA’s executive director, said in a statement.

“Governments, companies and investors need to get behind clean energy transitions rather than hindering them.”

Stronger policies needed

Ember, a non-profit environmental think-tank, said the report is a sign that the transition toward renewable energy is gaining momentum.

“We are hurtling towards an electric future faster every day,” said Ember’s global insights lead, Dave Jones.

“It’s been a long time coming, but renewable electricity will soon be built at a scale that can at last halt the rise of fossil fuels, not just within the power sector, but across the entire economy.”

However, the report also included a stark warning: much stronger policies are needed to limit greenhouse gas emissions to keep warming to 1.5 degrees Celsius by the end of the century. 

The challenge comes a month ahead of COP28, a pivotal United Nations climate conference in Dubai, where there are aims for a commitment to triple renewable capacity globally by 2030.

“Every country needs to find its own pathway, but international co-operation is crucial for accelerating clean energy transitions,” Birol said.

‘Wake-up call’ for Canada

Globally, investments in clean energy continue to rise, but experts in Canada say the country needs to do more to be a leader.

Only $2.8 billion was invested in solar energy in Canada last year, compared with $37 billion in oil and gas investments, according to federal data.

“This report is a great moment in the energy transition globally and a wake-up call for the energy transition in Canada,” said Stephen Thomas, who specializes in clean energy at the David Suzuki Foundation.

Federal government policies, such as regulations to make electricity cleaner and the promised cap on emissions from fossil fuel production, will help spur that transition, he said.

The IEA report also highlighted the crucial role that needs to be played by banks and investors in helping fund the transition. 

Richard Brooks, the climate finance director at environmental organization Stand.earth, said the report makes clear Canada is at a crossroads. 

“Canadian institutions, particularly our banks and our pension funds, have been part of the problem rather than part of the solution, and now is the opportunity to change that direction,” said Brooks, who is based in Toronto.

“Right now, our Canadian banks are really stepping on the accelerator when it comes to emissions growth, at a time when we need to be stepping on the brakes.”