Global energy transition faces rising demand and cooling needs

The global energy transition is progressing at two speeds. According to the Energy Transitions Commission (ETC) Energy Transition Monitor 2026, renewable energy accounted for 99% of the growth in global electricity production in 2025. However, greenhouse gas emissions have remained largely stable because rising energy demand continues to sustain the use of fossil fuels.

While clean energy investments reached a record $2.1 trillion in 2025, the expansion of renewable generation covered only about 40% of the total increase in global energy demand. This is driven by a 3% increase in global electricity demand, which is growing at more than double the rate of overall energy supply.

Additionally, the United Nations Environment Programme (UNEP) warns that the demand for cooling is becoming a critical infrastructure challenge. In a high-emission scenario, global electricity consumption for cooling could rise from nearly 5,000 TWh in 2022 to as much as 18,000 TWh by 2050. This surge in demand coincides with extreme weather events, such as droughts and heatwaves, which can simultaneously reduce the reliability of hydroelectric and solar power generation.