Global Emissions From Electricity Set to Fall Even as Power Demand Climbs, IEA Predicts

Global demand for electricity is set to grow at a faster rate over the next three years, but with record power generation from renewables and nuclear expected to cover the surge, emissions will likely go into structural decline, according to the International Energy Agency.

Electricity demand is on track to rise by an average of 3.4% a year through 2026, driven by robust growth in emerging economies, AI, cryptocurrencies and data centres, according to the Paris-based organisation’s latest report. However, global carbon-dioxide emissions from power generation are expected to fall, as low-emission energy sources—wind, solar, hydro and nuclear, among others—are likely to account for almost half of the world’s electricity generation by 2026, up from just under 40% last year.

“It’s encouraging that the rapid growth of renewables and a steady expansion of nuclear power are together on course to match all the increase in global electricity demand over the next three years,” IEA’s executive director Fatih Birol said on Wednesday.

“This is largely thanks to the huge momentum behind renewables, with ever cheaper solar leading the way, and support from the important comeback of nuclear power, whose generation is set to reach a historic high by 2025.”

In 2023, global CO emissions from electricity generation increased by 1%, but the IEA predicts a fall of more than 2% this year and smaller decreases in the next two years. Generation from cleaner energy sources is expected to rise at twice the annual growth rate seen between 2018 and 2023, while coal-fired generation is forecast to fall by an average of 1.7% annually through 2026, the IEA said.

Rapid growth of renewables will be supported by nuclear power. According to the report, nuclear generation is set to rise by roughly 3% a year on average to the end of 2026, despite a number of countries phasing out nuclear power or closing plants early.

France and Japan will restart several plants while new reactors begin operating in Europe, China, India and Korea. Asia will likely remain the main driver of growth, reaching a 30% share of global nuclear generation in 2026, the IEA said.

For years, nuclear power has been at the centre of the clean-energy debate. Proponents including France argue that it is a reliable, low-carbon alternative to fossil fuels, while opponents such as Germany say costs and risks from reactor accidents and waste are too high.

At the United Nations’ COP28 climate summit last year, the U.S. and 21 other nations pledged to triple nuclear power capacity by the middle of the century.

Most of the increase in electricity demand forecast by the IEA is set to come from emerging markets. China is expected to be the largest contributor to growth—with consumption boosted by the production of solar PV modules, electric vehicles and the processing of raw materials—while India is forecast to grow the fastest among major economies.

Rapid expansion of artificial intelligence, data centres and cryptocurrencies will also be a driver of growth, according to the agency, which predicts their power demand could double to roughly the equivalent of electricity consumption in Japan.

Last year, electricity demand growth slowed to 2.2% from 2.4% in 2022, as advanced economies suffered the impact of high inflation and lower industrial output, the IEA said.

Demand in the U.S. decreased by 1.6% after rising 2.6% in 2022, mainly because milder weather reduced the use of heaters and coolers, but demand is expected to recover this year to 2026. European Union power demand declined for the second consecutive year in 2023—despite a fall in energy prices—and isn’t expected to return to high levels until 2026 at the earliest, the IEA said.

Italian fine wines are gaining momentum among Australian collectors and drinkers, with new data from showing a surge in interest driven by value, versatility and a new generation of producers.

Long dominated by France, the premium wine conversation is beginning to shift, with Italy increasingly positioned as a compelling alternative for both drinking and collecting.

According to Langtons, the category is benefiting from a combination of factors, including its breadth of styles, strong food affinity and more accessible price points compared to traditional European benchmarks.

“Italy has always offered fine wine fans an incredible range of wines with finesse, nuance, expression of terroir, ageability, rarity, and heritage,” said Langtons General Manager Tamara Grischy.

“There’s no doubt the Italian wine category is gaining momentum in 2026… While the French have long dominated the fine wine space in Australia, we’re seeing Italy become a strong contender as the go-to for both drinking and collecting.”

The shift is being reinforced by changing consumer preferences, with Langtons reporting increased demand for indigenous Italian varieties and lighter, food-first styles such as Nerello Mascalese from Etna and modern Chianti Classico.

This aligns with the broader rise of Mediterranean-style dining in Australia, where wines are expected to complement a wider range of dishes rather than dominate them.

Langtons buyer Zach Nelson said the category’s versatility is central to its appeal.

“Italian wines often have a distinct, savoury edge making them an ideal pairing for a variety of cuisines,” he said.

The move towards Italian wines also comes as prices for traditional French regions continue to climb, particularly in Burgundy, prompting collectors to look elsewhere for value without compromising on quality.

Italy’s key regions, including Piedmont and Etna, are increasingly seen as offering that balance, with premium wines available at comparatively accessible price points.

Nelson said value is now a defining factor for buyers in 2026.

“Value is the key driver for Australian fine wine consumers… Italian wines are offering exactly that at an impressive array of price points to suit any budget,” he said.

The category is also proving attractive for newer collectors, offering what Langtons describes as “accessible prestige” and a more open entry point compared to the exclusivity often associated with Bordeaux.

Wines such as Brunello di Montalcino and Nebbiolo-based expressions are increasingly being positioned as entry points into cellar-worthy collections, combining ageability with relative affordability.

At the same time, a new generation of Italian producers is reshaping the category, moving away from heavier, oak-driven styles towards wines that emphasise site expression and vibrancy.

“There’s definitely a ‘new guard’ of Italian winemaking… stripping away the makeup… to let the raw, vibrating energy of the site speak,” Nelson said.

Langtons is also expanding its offering in the category, including exclusive access to wines from family-owned producer Boroli, alongside a broader selection spanning Piedmont, Veneto, Sicily and Tuscany.

The company will showcase the category further at its upcoming Italian Collection Masterclass and Tasting in Sydney, featuring more than 50 wines from 23 producers across four key regions.

For collectors and drinkers alike, the message is clear: Italy may have been overlooked, but it is no longer under the radar.

Global Emissions From Electricity Set to Fall Even as Power Demand Climbs, IEA Predicts

Starting this year, record generation from renewables and nuclear will cover rising power demand from growth in emerging markets, AI and data centers, the agency says

Italian wines are emerging as a serious contender for Australian collectors, offering depth, rarity and value as French benchmarks continue to climb.