Fossil fuels endure as global power demand reshapes energy future

Despite the push for renewables, fossil fuels will remain integral to the world's energy mix beyond 2050 as geopolitics, and rising power demand transform energy dynamics, says a McKinsey report

- ABDULAZIZ KHATTAK

THE world's energy landscape is undergoing profound transformation, yet fossil fuels are far from losing their relevance.

Despite growing investments in renewables and low-carbon technologies, oil, gas, and coal are projected to retain a dominant share of the global energy mix well beyond 2050.

According to McKinsey's Global Energy Perspective 2025 report, fossil fuels are expected to account for between 41 and 55 per cent of total energy consumption by mid-century, down from today's 64 per cent, but still higher than previously projected.

This persistence underscores how complex and uneven the global transition remains, driven as much by geopolitical uncertainty and policy shifts as by the relentless rise in energy demand.

The energy transition is not a linear story of replacement, but one of coexistence.

Even as renewables, nuclear, and storage technologies advance, fossil fuels continue to underpin energy security, affordability, and industrial growth across the world.

With developing economies rapidly industrialising and populations expanding, power demand is increasing faster than clean technologies can scale.

As such, the global energy transition will remain a balancing act; between ambition and reality, and between decarbonisation and development.

THE FORCES RESHAPING GLOBAL ENERGY

Geopolitical volatility is now one of the most decisive factors shaping global energy outlooks.

The shocks of the past few years—from trade tensions and tariffs to energy supply disruptions—have forced governments to recalibrate priorities.

Many are now placing energy affordability and security above strict adherence to Paris Agreement timelines.