World's energy supply system under threat as global demand increases

With increased global demand for energy set to rely on fossil fuels for decades, the International Energy Agency has warned that climate change targets are at risk and conflicts could wreak havoc with energy supplies.

"The global energy system is in danger of falling short of the hopes and expectations placed upon it," the IEA said in its "World Energy Outlook 2014" report, which came ahead of yesterday's announcement in Beijing that China and the United States had agreed to new limits on carbon emissions starting in 2025.

The Paris-based body, which advises industrial oil-consuming nations, also forecast China would overtake the US as the world's biggest oil consumer "in the early 2030s".

Growth in oil demand to 2040 would also be driven by India, Southeast Asia, the Middle East and sub-Saharan Africa, the IEA said. Consumption in developed economies would shrink, with oil use in the US falling to the lowest level in decades, it said.

Overall global energy demand would grow 37 per cent by 2040, with fossil fuels key to meeting that increased demand despite concerns about global warming.

The IEA warned global energy security was at risk as "reliance grows on a relatively small number of producers".