Ameer Randolph
Fossil fuels, including coal, oil, and gas, have long played a dominant role in global energy systems. In 2023, petroleum and natural gas accounted for about 38% and 36% of US energy consumption, respectively. In the same year, the transportation sector, which relies heavily on petroleum fuels, was the largest contributor to direct greenhouse gas emissions. The burning of fossil fuels releases carbon dioxide (CO2) and other harmful pollutants, making it the largest driver of global climate change and a significant contributor to local air pollution. While the world is transitioning towards low-carbon energy sources, fossil fuels still account for a significant share of global energy consumption and continue to impact the environment and human health.
| Characteristics | Values |
|---|---|
| Fossil fuels accounted for in 2023 | 82% of Global Energy Mix |
| Fossil fuels accounted for in 2019 | 74% of U.S. Greenhouse Gas Emissions |
| Fossil fuels accounted for in 2020 | 20% of U.S. Electricity Generation |
| Fossil fuels accounted for in 2023 in the U.S. | 60% of Electricity Generation |
| Fossil fuels accounted for in 2020 | One-third of U.S. Energy Consumption |
| Fossil fuels accounted for in 2020 | 19% of U.S. Energy Consumption |
| Fossil fuels accounted for in 2020 | 45% of U.S. Greenhouse Gas Emissions |
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What You'll Learn
Fossil fuels and climate change
Fossil fuels are formed from the decomposition of carbon-based organisms that died millions of years ago. They create carbon-rich deposits that are extracted and burned for energy. Fossil fuels include coal, natural gas, and oil. They supply around 80% of the world's energy and are used to make plastic, steel, and a wide range of products.
When fossil fuels are burned, they release large amounts of carbon dioxide (CO2) into the atmosphere. CO2 is a greenhouse gas that traps heat in the atmosphere, leading to global warming and climate change. The Intergovernmental Panel on Climate Change (IPCC) has found that emissions from fossil fuels are the dominant cause of global warming. In 2019, fossil fuels accounted for 75% of greenhouse gas emissions and nearly 90% of carbon dioxide emissions globally. The burning of coal, natural gas, and oil for electricity and heat is the largest single source of global greenhouse gas emissions.
The concentration of carbon dioxide in the atmosphere has increased significantly since the beginning of the industrial era, with the atmosphere now containing 50% more carbon dioxide than in 1750. This has resulted in rising global temperatures, with the average global temperature already increasing by 1°C above pre-industrial levels. In 2024, global temperatures passed the critical 1.5°C milestone for the first time.
To limit global warming and mitigate climate change, it is crucial to reduce emissions from fossil fuels. Scientists have warned that carbon dioxide emissions from fossil fuels must be halved within the next decade to limit warming to 1.5°C above pre-industrial levels. This will require a transition to cleaner energy sources and the implementation of measures such as carbon capture and storage technology.
In summary, fossil fuels are a significant contributor to climate change due to their high carbon dioxide emissions. Reducing the use of fossil fuels and transitioning to cleaner energy sources is essential to mitigate the impacts of climate change and limit global warming.
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Fossil fuel emissions
Fossil fuels (coal, oil, and gas) have played and continue to play a dominant role in global energy systems. However, they also have several negative impacts. When burned, they produce carbon dioxide (CO2) and are the largest driver of global climate change. Fossil fuel emissions are the dominant cause of global warming, with 89% of global CO2 emissions in 2018 coming from fossil fuels and industry. The burning of fossil fuels accounted for 74% of total U.S. greenhouse gas emissions in 2020.
In the United States, the burning of fossil fuels, particularly for the power and transportation sectors, accounts for about three-quarters of carbon emissions. Fossil fuels emit more than just carbon dioxide when burned. Coal-fired power plants single-handedly generate 35% of dangerous mercury emissions in the United States, as well as two-thirds of sulfur dioxide emissions, which contribute to acid rain, and the majority of soot in the air. Fossil fuel-powered vehicles are the main contributors to poisonous carbon monoxide and nitrogen oxide, which produce smog on hot days and lead to respiratory illnesses from sustained exposure.
Oil is a major source of greenhouse gas emissions. In 2020, oil combustion was responsible for 45% of U.S. energy-related carbon dioxide emissions. Oil releases a huge amount of carbon when burned, accounting for approximately one-third of the world's total carbon emissions. Natural gas is a cleaner energy source than coal and oil, but it is still a fossil fuel and accounts for about a fifth of the world's total carbon emissions. In 2020, natural gas accounted for about 36% of U.S. energy consumption and 37% of total annual energy-related CO2 emissions.
Coal is the dirtiest fossil fuel and is responsible for over 0.3 degrees Celsius of the 1-degree increase in global average temperatures. Coal and the power plants that burn it account for less than a third of U.S. electricity generation, down from over half in 2008. In 2020, coal supplied 19% of U.S. energy consumption and 16% of total annual energy-related CO2 emissions.
To limit global warming, a mass switch to renewable energy and efficiency is necessary. Fossil fuel emissions must be halved within 11 years if global warming is to be limited to 1.5 degrees Celsius above pre-industrial levels. While carbon capture and storage (CCS) can help mitigate the worst effects of climate change, it does not mean industries should continue burning fossil fuels unabated, as they release other harmful pollutants.
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Fossil fuel consumption by country
Fossil fuels—oil, coal, and gas—remain the world's primary energy source, accounting for over 90% of carbon dioxide emissions. While renewable energy is experiencing rapid growth, fossil fuels still dominate the global energy mix. In 2023, gas, oil, and coal accounted for 81.5% of global energy consumption, a slight decrease from 82% in 2022.
The United States and China are the top two consumers of fossil fuels, together responsible for almost half (47%) of global fossil fuel consumption. In 2022, the US consumed over 19.1 million barrels of oil per day, as well as 32.2 trillion cubic feet of natural gas. China, the world's largest coal consumer, accounted for 56% of global coal consumption in 2023, consuming 140 exajoules of fossil fuels, equivalent to approximately 5.8 billion tonnes of hard coal.
Other countries with significant fossil fuel consumption include India, Japan, Russia, Germany, and Canada. India ranked third in fossil fuel consumption in 2023, with 35 exajoules. Japan, despite its relatively small territory, ranked fifth in fossil fuel consumption in 2022, consuming over 151 million metric tons of oil and importing 180.3 million tons of coal. Russia, a prominent player in the oil market, consumed 3.67 million barrels of oil daily in 2021, accounting for 4% of global consumption. Germany, a heavy consumer of fossil fuels, consumed over 2 million barrels of oil per day and 2.3 exajoules of coal in 2022. Canada, heavily dependent on oil for its transportation and industrial sectors, consumed upwards of 98 million metric tons of oil in 2022, along with significant coal and gas usage.
It is worth noting that some smaller countries have extremely high per capita fossil fuel consumption rates. For instance, Equatorial Guinea, with a population of just over 1.2 million people, leads the world in per capita fossil fuel consumption, at 18 metric tons per person per year.
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Fossil fuel alternatives
Fossil fuels, including coal, oil, and gas, have long dominated global energy systems. However, they have detrimental environmental impacts, contributing to climate change and air pollution. As a result, there is a pressing need to transition to low-carbon energy sources.
Renewable energy sources, such as solar, wind, and tidal power, are at the forefront of this transition. Solar energy, in particular, has gained significant traction as an alternative to fossil fuels. Through solar power technology, energy from the sun is converted into electricity. This form of energy is abundant and, unlike fossil fuels, can be replenished naturally.
Wind energy, generated through wind turbines, is another prominent alternative. These turbines harness the wind's energy to turn the propellers, spinning a rotor that generates electricity. A single wind turbine can produce over 6 million kilowatt-hours of energy annually.
Hydrogen is also emerging as a potential alternative fuel, particularly for heavy transport. It can be produced from renewable resources and used in fuel cell electric vehicles, offering a potentially emissions-free option.
Nuclear power, derived from controlled nuclear fission in power stations, is another low-carbon source that can help reduce reliance on fossil fuels. Biomass, derived from biological materials such as wood and plant residues, is another alternative. However, burning biomass still produces greenhouse gases, albeit at a lower rate than fossil fuels.
Geothermal energy, harnessing heat from the Earth's interior, is a viable option in volcanically active areas like Iceland, where it provides 30% of the country's electricity.
The shift towards these alternatives is gaining momentum, with renewable energy sources accounting for 23.2% of all energy sources for power generation in 2020, and this trend is expected to continue.
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Fossil fuel industry subsidies
Fossil fuel subsidies are any government action that lowers the cost of fossil fuel energy production, raises the price received by energy producers, or lowers the price paid by energy consumers. They can be defined in different ways, including production, consumption, explicit, and implicit subsidies, and can range from hundreds of billions of US dollars to as much as $7 trillion.
Explicit subsidies occur when the retail price is below a fuel's supply cost. In 2022, global explicit subsidies for fossil fuels amounted to around $1.5 trillion, with around 80% going to consumers and the rest going into fossil fuel production. This is a significant sum, equivalent to around 1.5% of global gross domestic product (GDP) or the entire GDP of countries like Russia or Australia.
Implicit subsidies, on the other hand, refer to undercharging for environmental costs and forgone consumption taxes. The vast majority of subsidies are implicit, as environmental costs are often not reflected in prices for fossil fuels, especially for coal and diesel. In 2022, consumers did not pay for over $5 trillion of environmental costs.
Fossil fuel subsidies have sizable fiscal costs, promote inefficient allocation of an economy's resources, encourage pollution and climate change, and disproportionately benefit higher-income households. Removing fossil fuel subsidies would reduce air pollution, generate revenue, and make a major contribution to slowing climate change. It would also reduce energy security concerns related to volatile fossil fuel supplies.
However, removing fuel subsidies can be challenging. Governments must carefully design, communicate, and implement reforms as part of a comprehensive policy package. A portion of the increased revenues should be used to compensate vulnerable households for higher energy prices, while the remainder could be used to cut taxes and fund public goods such as education, healthcare, and clean energy.
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Frequently asked questions
Fossil fuels (coal, oil, and gas) play a dominant role in global energy systems. Around four-fifths of global primary energy comes from fossil fuels. In 2023, petroleum accounted for about 38% of U.S. energy consumption, while natural gas accounted for about 36%.
Fossil fuels account for a much smaller share of electricity production than the energy system as a whole. In 2022, 60% of electricity in the U.S. came from burning fossil fuels, mostly coal and natural gas. In 2020, renewable energy accounted for about 20% of U.S. electricity generation.
Fossil fuels are the largest driver of global climate change. In 2022, fossil fuel combustion accounted for 8% more CO2 emissions than in 2020. In 2020, oil was the largest source of U.S. energy-related carbon emissions, with natural gas close behind. Fossil fuels account for 74% of total U.S. carbon emissions.
