Sylvie Willis
Fossil fuels, predominantly coal and gas, remain the primary source of electricity worldwide. In 2023, fossil fuels accounted for over 60% of global electricity generation, with coal alone contributing more than a third of this. Despite the rapid growth of renewable energy sources, the share of electricity generation from fossil fuels has remained relatively unchanged, with some countries sourcing well over half of their electricity from these fuels. As a result, fossil fuels continue to be the largest source of global carbon dioxide emissions, underscoring the urgent need for a transition to cleaner energy alternatives.
| Characteristics | Values |
|---|---|
| Percentage of global electricity from fossil fuels | Over 60% |
| Fossil fuels included in the calculation | Coal, oil, natural gas, and petroleum |
| Countries with more than half of their electricity from fossil fuels | The US, China, India, Japan, Poland, Turkey, Indonesia, the Philippines |
| Largest source of global carbon dioxide emissions | Fossil fuels |
| Percentage of global electricity from coal | 36% to 37% |
| Percentage of global electricity from natural gas | 22.6% to 24% |
| Percentage of global electricity from oil | Less than 3% |
| Global energy mix in 2023 | 82% fossil fuels |
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What You'll Learn
Fossil fuels vs. renewable energy sources
The world still relies heavily on fossil fuels for electricity generation, with coal, oil, and natural gas being the predominant sources. In 2023, about 60% of electricity generation in the United States came from fossil fuels, while renewable energy sources accounted for about 21%. Globally, the majority of electricity is generated from fossil fuels, predominantly coal and gas. This contributes significantly to global carbon dioxide (CO2) emissions, with burning fossil fuels accounting for 74% of U.S. greenhouse gas emissions in 2019.
However, the energy landscape is evolving, and there is a growing trend towards renewable energy sources. In 2023, renewables surpassed coal in energy generation in the United States, and renewable energy accounted for about 20% of U.S. electricity generation in 2020, a share that is expected to continue growing. Wind and solar are the fastest-growing renewable sources, although they currently contribute less than 3% of total energy used in the U.S. The U.S. DOE's SunShot Initiative aims to reduce the price of solar energy by 50% by 2030, which could lead to 33% of U.S. electricity demand being met by solar power. Additionally, onshore and offshore wind resources have significant potential capacity, with over 8.5 GW of wind capacity installed in the U.S. in 2022.
While fossil fuels have dominated the energy sector for decades, the balance is starting to shift. The decline in nuclear energy has been offset by the progress made in renewables, and some countries now get over 90% of their electricity from nuclear or renewable sources, primarily hydropower and nuclear energy. As the costs of natural gas and renewable energy continue to drop, coal is becoming less competitive, with coal usage and carbon dioxide emissions from coal decreasing in the United States.
The transition to cleaner and more sustainable energy sources is crucial to mitigating climate change. Renewable energy sources, such as solar, wind, hydropower, biomass, and tidal power, offer a much smaller environmental footprint and can help address energy security concerns. Carbon capture and storage (CCS) technology can also play a role in reducing carbon emissions, but it should not be seen as a justification to continue burning fossil fuels unabated, as they release other harmful pollutants. Net metering, feed-in tariffs, and green banks are additional mechanisms that support the transition to clean energy and reduce emissions.
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Coal, oil, and gas
Fossil fuels—coal, oil, and natural gas—are the largest source of global carbon dioxide (CO2) emissions. In 2023, fossil fuels comprised 82% of the global energy mix, according to the Energy Institute. Oil and coal accounted for a third and a quarter of the world's energy consumption, respectively.
In the United States, about 60% of electricity generation in 2023 came from fossil fuels, including coal, natural gas, petroleum, and other gases. Petroleum, specifically, was the source of about 0.4% of US electricity generation that year. Other gases, including blast furnace gas and other manufactured and waste gases derived from fossil fuels, accounted for about 0.5% of US utility-scale electricity generation in 2023. Nearly all US coal (about 93% in 2018) is used to generate electricity. In 2018, coal accounted for 16% of total domestic energy production, a decline from nearly 1.2 billion tons in 2008.
On a global scale, coal and gas are the predominant sources of electricity generation from fossil fuels. Coal, the cheapest and dirtiest fossil fuel, is the single largest source of carbon emissions, responsible for over 0.3 degrees Celsius of the 1.2-degree increase in global average temperatures since the Industrial Revolution. It is also a major contributor to air pollution. In 2019, coal remained the dominant fuel for power generation, reaching 37% of global electricity production, 10% more than renewables.
While fossil fuel production decreased in 2020 relative to 2019 due to the global health crisis, coal production decreased by 4%, according to preliminary data. Natural gas production was less affected, decreasing by 3%. However, oil, which fell from 44% to 31% of total energy supply between 1971 and 2010, experienced a 7% decrease in 2020.
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Nuclear energy
In 2023, about 60% of electricity generation in the United States was from fossil fuels, including coal, natural gas, petroleum, and other gases. This is a decrease from 2019 when fossil fuels accounted for 74% of U.S. greenhouse gas emissions. The decrease in fossil fuel usage is partly due to the increasing adoption of renewable energy sources, which accounted for about 20% of U.S. electricity generation in 2020 and 21% in 2023. Renewable energy sources are expected to continue gaining share in the energy mix.
Nuclear power, through the use of sustained nuclear fission, generates heat and electricity. It offers several benefits, including low carbon emissions and reliable energy production. However, it also comes with challenges, such as radioactive waste disposal and safety concerns.
Advanced small modular reactors have the potential to revolutionize nuclear power. These reactors offer increased flexibility, improved safety, and more efficient waste management. By addressing some of the traditional drawbacks of nuclear energy, advanced small modular reactors can play a crucial role in the transition to a cleaner energy future.
While the United States has made significant progress in reducing its reliance on fossil fuels and increasing the adoption of renewable energy sources, there is still a long way to go. Nuclear energy will likely continue to play an important role in the country's energy mix, especially as advanced technologies emerge to enhance its benefits and mitigate its risks.
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Carbon emissions
The electricity sector is a major source of carbon emissions, particularly through the burning of fossil fuels for electricity generation. In 2019, burning fossil fuels accounted for 74% of U.S. greenhouse gas emissions. Coal, in particular, has a high carbon intensity, meaning it produces a large amount of CO2 per unit of electricity generated. As a result, the shift away from coal-fired power plants and towards renewable energy sources has led to a significant decrease in carbon dioxide emissions from coal in the United States—by 50% from 2007 to 2019.
Natural gas, another fossil fuel, has gained popularity due to its lower carbon dioxide emissions compared to coal. However, natural gas infrastructure, including plants, wells, and pipelines, can leak methane, a greenhouse gas that is much more potent than carbon dioxide in trapping heat in the atmosphere. In 2020, natural gas was responsible for 36% of U.S. greenhouse gas emissions.
To reduce carbon emissions from the electricity sector, there has been a growing focus on renewable energy sources such as solar, wind, hydropower, and biomass. These sources have a lower environmental impact and can help reduce carbon intensity. For example, the U.S. SunShot Initiative aims to reduce the price of solar energy by 50% by 2030, which is projected to lead to a significant decrease in electricity sector GHG emissions by 2050. Additionally, technologies such as carbon capture and storage (CCS) can collect carbon emitted by the fossil fuel sector and inject it back into the earth, helping to mitigate the worst effects of climate change.
While progress is being made, the majority of global electricity is still generated from fossil fuels, and the transition to clean electricity needs to be accelerated. This is particularly important as other sectors, such as transport and heating, shift towards electrification, increasing the demand for low-carbon electricity.
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Cleaner technologies
In 2023, about 60% of electricity generation in the United States was from fossil fuels, with coal, natural gas, and petroleum being the most common sources. However, there is a growing trend of adopting cleaner technologies for electricity generation.
Renewable Energy Sources
Renewable energy sources, such as solar, wind, and hydropower, are cleaner alternatives to fossil fuels. Solar energy utilizes solar panels to absorb sunlight, which is then converted into electricity. Wind energy harnesses the power of wind through wind turbines, while hydropower uses the natural flow of moving water to generate electricity. These sources are abundant and accessible, and they produce electricity without emitting greenhouse gases.
The U.S. has seen an increase in renewable energy usage, with wind and solar being the fastest-growing sources. In 2023, renewable energy sources accounted for about 21% of U.S. electricity generation, and this share is expected to continue growing. The Levelized Cost of Energy (LCOE) for utility-scale renewable energy sources like solar and onshore wind has been lower than that of fossil fuels, making renewables more cost-competitive.
The SunShot Initiative by the U.S. DOE aims to reduce solar energy costs by 50% by 2030, which could lead to 33% of U.S. electricity demand being met by solar power. Additionally, the Energy Department is investing in improving the performance and reducing the costs of wind energy technologies.
Nuclear Energy
Nuclear energy is a carbon-free source of electricity generated through nuclear fission. It is one of the most efficient and reliable sources of clean energy. In 2021, nuclear energy accounted for 18.9% of all electricity generated in the U.S. and is becoming an increasingly common choice for businesses and homes.
Biomass Energy
Biomass energy is derived from plant materials, including agricultural residues, forest resources, and urban wood waste. It has low net CO2 emissions compared to fossil fuels because it releases the CO2 it absorbed during growth. In 2023, biomass energy consumption in the U.S. was primarily from wood waste from the pulp, paper, and paperboard industries.
Carbon Capture and Storage (CCS)
CCS is a technology that captures carbon emitted by the fossil fuel sector and injects it back into the earth. In 2020, 26 commercial CCS plants worldwide captured 40 million tons of carbon, and the number of CCS plants is expected to increase. While CCS helps mitigate the effects of climate change, it does not eliminate the need to reduce the burning of fossil fuels, as they release other harmful pollutants.
Policy Initiatives and Programs
The transition to cleaner technologies is also being facilitated by various policy initiatives and programs. Net metering, offered in 34 states and U.S. territories, allows customers to sell excess electricity generated back to the grid. Feed-in tariffs (FITs) set a minimum price for renewable electricity generation, and green banks provide financing for clean energy projects. The Rural Energy for America Program (REAP) funds grants and loan guarantees for agricultural producers and rural small businesses to adopt renewable energy systems.
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Frequently asked questions
As of 2023, fossil fuels account for over 60% of global electricity generation.
Fossil fuels are fuels formed from the geological process of fossilization over millions of years. They include coal, oil, and natural gas.
As of 2023, renewable sources account for less than 40% of global electricity generation. However, this varies by country, with some getting nearly all their electricity from renewable sources.
There are global efforts to transition to clean energy and reduce carbon emissions. The IEA has forecasted $2 trillion in investments in clean energy technologies and infrastructure for 2024. Additionally, the Group of Seven (including the US, UK, and Canada) has agreed to exit coal by the 2030s.
