Existing clean power technologies can replace 75% of fossil fuel demand

With renewable energy now receiving double the investment that fossil fuels attract, the energy transition is accelerating and existing clean power technologies already have the potential to replace 75% of fossil fuel demand.

A report published today (September 16) by the We Mean Business Coalition in partnership with Ember, the Energy Transitions Commission and E3G suggests that fossil fuel producers betting on continued demand could find themselves with stranded assets in just a few years.

Clean electricity already made up more than 40% of the global power mix in 2024, and the renewables sector now attracts twice as much investment as the fossil fuel industry – 3.6 times more in the case of China. Even the US, the largest investor in fossil fuels, still invests 1.5 times as much in clean energy. 

With accelerating investments and fast-declining costs, clean energy is on track to displace 75% of existing fossil fuel demand. Between 2023 and 2024 alone, new solar and wind, alongside energy storage, displaced over 650 TWh of fossil fuel use — more than the total electricity demand of South Korea. 

Businesses ready to relocate to renewable-based electricity systems

Business appetite for renewables is also strong as companies work towards their own net zero targets: a poll of over 1,400 executives across 15 countries found that half would relocate their operations and supply chains if their governments don’t transition to a renewables-based electricity system.

Electric vehicles represent 22% of all cars sold in the last five years, and EVs are already replacing 1.3 million barrels of oil per day – and are set to replace 5 million barrels of oil per day by 2030. 

Between the fast deployment of renewable energy sources and the growth in electrified transportation, fossil fuel producers would be wrong to bet on continued oil, gas and coal demand in the coming years, WBCSD argues.

Supportive policies still needed for fossil fuel displacement

Even in emerging markets, clean energy implementation is accelerating: In Latin America, for example, the share of solar and wind in total generation rose from under 2% to over 16% over the last 10 years, while in Africa, solar and wind grew from 1% to 7%. 

However, the coalition warns that realising the full potential to displace fossil fuel demand will require the right policies and incentives: “Businesses across the globe are ready to scale clean technologies, modernise supply chains and lead in global markets. But they need clear policy signals. The findings in this analysis send a clear message to policymakers, investors, fossil fuel producers and corporate energy consumers that clean energy is gaining momentum and that sustained investment in fossil fuels brings significant risks.”