Renewable energy growth and fossil fuel reality this year

Fossil fuels still dominate the global energy system

- By ESG Now

Global spending on renewable energy is by far outpacing investment in new fossil-fuel power generation.

(Gallo Images)

As countries race to secure energy security, economic competitiveness and climate credibility, a clear divide has emerged between petro-states, whose economies remain anchored in fossil fuels, and electro-states, which are rapidly electrifying their energy systems using renewables.

As the world enters 2026, renewables are growing at record speed. But fossil fuels still dominate the global energy system, not only in electricity generation but also across transport, industry and heating.

Global renewable power capacity expanded by roughly 585 gigawatts, the largest annual increase recorded to date. According to the International Energy Association, renewables accounted for more than 92% of all new power capacity added worldwide last year, driven mainly by solar and wind.