Ameer Randolph
Fossil fuels, including coal, oil, and gas, have been the primary source of global electricity for centuries, with production and consumption varying across countries. Despite the growing transition to renewable energy sources, fossil fuels still play a dominant role in the energy mix of many nations. This paragraph aims to delve into the countries that predominantly rely on fossil fuels as their primary energy source and explore the ongoing shift towards cleaner alternatives.
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What You'll Learn
China's transition to renewable energy sources
China is the largest consumer of primary energy in the world, and while fossil fuels still make up a large proportion of its energy mix, the country has also become a world leader in renewable energy. In 2021, China pledged to the UN to "strictly limit" coal growth, control new coal power, reduce energy and carbon intensity, and increase the share of non-fossil energy sources to 20% by 2025 and 25% by 2030. China also intends to generate 50% of the increase in energy use from 2020 to 2025 from renewable sources.
China's transition to renewable energy has been driven by significant investment in clean energy, energy storage, and transmission grids. In 2024, China spent $625 billion USD on clean energy, accounting for 31% of the global total. This investment has paid off, with wind and solar electricity generation increasing by 25% in 2024 compared to 2023, and by a further 27% in the first half of 2025. This has contributed to a 2% reduction in fossil fuel generation in 2025 compared to the previous year. China's renewable energy capacity is also impressive, with the country on track to reach 1,000 gigawatts of solar power alone by the end of 2026, which would be a substantial contribution to the world's renewable energy targets.
China's transition to renewable energy is also evident in the end-use sectors. In 2023, electricity overtook coal as the largest energy source for industry, and while oil-derived fuels still dominate the transport sector, the rapid expansion of China's electric vehicle fleet is gaining ground. Additionally, China is a world leader in low-emission hydrogen, hosting the largest green hydrogen project on the planet and around 40% of the world's hydrogen refuelling stations.
China's renewable energy transition has been supported by its enterprises, which are instrumental in creating and implementing low-carbon technologies worldwide. The country's embrace of AI and algorithms has also optimized energy consumption, with companies reportedly reducing carbon emissions by 400,000 tons annually. China's transition to renewable energy is, therefore, well underway, and the country is playing a significant role in powering the world's green transition.
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India's booming automotive industry
India's automobile industry is the world's fourth-largest by production and valuation as of 2022. In 2023, it became the third-largest automobile market in the world in terms of sales. As of April 2022, India's auto industry is worth more than $100 billion and accounts for 8% of the country's exports and 7.1% of India's GDP. The industry provides employment to 37 million people and holds a 4.7% share in India's exports.
The Indian automobile market has witnessed significant growth, reaching a value of $116.86 billion in 2023, reflecting an 8.10% growth from $108.10 billion in 2022. The industry is projected to increase to $217.90 billion by 2031, indicating a CAGR of 8.1%. This growth is driven by several factors, including increasing domestic demand, favourable government policies, and the ability to adapt to future trends such as the rising demand for electric vehicles.
The Indian government has implemented several initiatives to support the automobile industry, such as the Automotive Mission Plan 2026, the scrappage policy, and the Production-Linked Incentive (PLI) Scheme. In February 2022, 20 carmakers, including Tata Motors Ltd, Suzuki Motor Gujarat, Mahindra and Mahindra, Hyundai, and Kia India Pvt. Ltd., were chosen to receive production-linked incentives (PLI) to increase local vehicle manufacturing and attract new investments. The proposed investment by these 20 automobile companies is around $5.95 billion. The Production-Linked Incentive (PLI) Scheme has been particularly successful, attracting a proposed investment of `67,690 crore over a five-year period, surpassing the initial target estimate of `42,500 crore.
The electric vehicles industry is expected to create five crore jobs by 2030 and necessitates a $180 billion investment in vehicle manufacturing and charging infrastructure. During FY 2023-24, total domestic automobile sales surged to 23.85 million units, with the Passenger Vehicles (PV) and three-wheelers segments experiencing strong volume growth of 8.45% and 41.53%, respectively. The sale of electric vehicles is also increasing, with 1,00,000 EVs sold in CY24 compared to 82,688 in CY23.
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Oil as the primary energy source in Korea
Fossil fuels, including oil, coal, and natural gas, are the primary energy sources for many countries. In 2023, China was the largest consumer of primary energy in the world, with the United States coming in second.
South Korea, a major energy importer, relies heavily on oil as its primary energy source. In 2023, oil accounted for over 84% of the country's total primary energy consumption, with coal and natural gas as secondary sources. South Korea imports nearly all of its oil needs and is the second-largest importer of liquefied natural gas globally.
The country's energy sector is dominated by government-owned enterprises, although private coal mines and oil refineries also operate. South Korea has set ambitious decarbonization goals, aiming to increase the share of electricity from renewable sources to 35% by 2030.
South Korea's first nuclear power plant opened in 1977, and by 1987, eight plants were in operation, providing an estimated 53.3% of total electric power output. However, oil remains the primary energy source, with nuclear, coal, and liquefied natural gas also contributing significantly to the country's energy mix.
The transition from fossil fuels to renewable energy sources is crucial in mitigating climate change and reducing air pollution, which causes millions of premature deaths annually. South Korea's efforts to diversify its energy sources and increase the share of renewable energy are aligned with global trends and the urgent need to reduce greenhouse gas emissions.
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Japan's small territory and high fossil fuel consumption
Japan is a small country with a high consumption of fossil fuels. In 2019, fossil fuels accounted for 88% of the country's primary energy consumption. Japan's rapid industrial growth since World War II has led to a significant increase in its energy consumption, with its global leading manufacturing industry having a high electricity demand for its production. The country's limited domestic energy resources have made it heavily dependent on imported fossil fuels, with 97% of its oil and liquefied natural gas (LNG) being imported as of 2022, making it the largest LNG importer globally.
Japan's high consumption of fossil fuels has had an impact on its greenhouse gas emissions, with the country facing international criticism for its slow transition to renewable energy sources. Following the Fukushima Daiichi Nuclear Power Plant disaster in 2011, nuclear energy was replaced by fossil fuels, further increasing the country's reliance on them. However, Japan has recognized the need to reduce its greenhouse gas emissions and has set targets to become carbon-neutral and achieve net-zero emissions by 2050.
The country is taking steps towards reducing its dependence on fossil fuels and increasing its use of renewable energy sources. In recent years, the share of renewables in electricity production has increased to close to 22%, with a significant expansion of renewable energy capacity, particularly in biomass power. Japan has also committed to reducing its GHG emissions by 46% from 2013 levels by 2030.
While Japan's small territory and limited domestic resources have contributed to its high consumption of fossil fuels, the country is making efforts to transition to renewable energy and reduce its environmental impact. However, with its high energy demands and the vulnerability of its current system, as seen in the gas shortages in 2021, Japan faces challenges in achieving its emissions targets and securing a stable electricity supply.
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Germany's heavy consumption of fossil fuels
Fossil fuels, including coal, oil, and gas, are the primary sources of energy worldwide. While global primary energy consumption has increased over the last decade, the largest growth is expected in emerging economies like Brazil, Russia, India, and China. China is the largest consumer of primary energy in the world, with the US coming in second place.
Germany is the sixth-largest consumer of energy in the world and has the largest national market for electricity in Europe. Germany's largest domestic energy source is oil (35.2%), followed by natural gas (23.9%), renewables (22.8%), coal (16%), and other sources (2.2%). Fossil fuels account for 75% of Germany's energy use, which is down from 81% in 2010. Germany was the fifth-largest consumer of oil in the world in 2018, with oil accounting for 34.3% of all energy use, and another 23.7% coming from natural gas. In 2021, Germany was the world's largest importer of natural gas.
Germany has been called "the world's first major renewable energy economy," and the German government supports the European Green Deal. The country has made commitments to phasing out nuclear energy and fossil fuels, with a goal of being climate neutral by 2045. Germany plans to increase the share of renewable energy in gross energy consumption to 60% by 2050 and in gross electrical consumption to 80% by 2050.
However, Germany and the EU remain heavily dependent on imported fossil fuels, with Russia being the main supplier of oil and natural gas until the end of 2021. Germany still extracts lignite (brown coal) for power production on a large scale and was the world's biggest producer of lignite for years. Lignite covered 8.5% of Germany's primary energy use in 2023, with most of it burned for power generation (17% of gross electricity production) or district heating. Germany has also been opening new coal power plants until recently, following a 2007 plan to build 26 new coal plants, which has been controversial given the country's commitment to reducing carbon emissions.
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Frequently asked questions
China is the largest consumer of primary energy in the world, with some 170.7 exajoules consumed in 2023. This is a lot more than the second-largest consumer, the United States. Together, China and the US are responsible for almost half (47%) of global fossil fuel consumption.
The US is the largest consumer of oil, with over 19.1 million barrels consumed per day as of 2022.
The Kingdom of Saudi Arabia is one of the world's largest producers and consumers of oil. In 2022, the country consumed over 166 million metric tons of oil.
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