The world is set to pump far more oil and gas than it would use if it is to meet the 1.5C warming limit endorsed by governments in the Paris Agreement, according to new analysis from the International Energy Agency (IEA).
Meeting the Paris temperature target would mean shutting down production of eight million barrels a day of oil and 250 billion cubic metres of gas a year by 2050, the IEA said in a report this week – roughly equal to Saudi Arabia’s oil and Iran’s gas output today.
Back in 2021, the agency made headlines by declaring there was “no room” for new fossil fuel production projects in a 1.5C warming scenario.
But this week, it added that – with the 1.5C scenario’s projected rapid drop in oil and gas demand – “several higher cost” oil and gas production projects should be shut down “before they reach the end of their technical lifetimes”.
While the IEA did not name any specific projects, it has previously identified oil projects in Canada, China and Algeria and gas projects in Australia, Argentina and Malaysia as among the most expensive. The cost of extracting oil and gas varies, mainly depending on geographic and geological factors.
Kelly Trout, research director at Oil Change International, said that the IEA’s findings show “countries must follow through on their internationally agreed commitment to transition away from polluting fossil fuels, and invest in a renewable energy future”.
Buried in a box
Despite those findings, a press release accompanying the report led with warnings about the “implications for markets and energy security” of slowing production in oil and gas fields – an aspect many media articles focused on. The IEA has come under pressure from the Trump administration in the US to promote fossil fuels.
The 1.5C warming scenario, meanwhile, was buried in a three-paragraph box near the end of the 73-page report.
The report found that most of the cheapest and easiest-to-access oil and gas reserves have already been extracted, “leaving primarily smaller, deeper and more technically challenging fields” which are often deep under the sea.
Despite recent large discoveries of oil in Guyana and gas in Mozambique, the amount of conventional oil and gas discovered has been declining since at least the 1960s, the report found. Over the last ten years, oil and gas companies have been spending less and less on exploration.
Of the $550 billion spent annually, about $500bn simply replaces declining fields. Only $50bn goes to new supply, the IEA estimated.
Guy Prince, head of energy supply research at Carbon Tracker, told Climate Home that the big publicly traded oil and gas companies “are being cautious, quietly retreating from energy growth and instead returning cash to shareholders”.
In 2024, Rystad analysis shows that six of these big companies paid out a record $119 billion to shareholders, leaving them with less cash to invest in producing oil and gas.
Prince said the shift to electric vehicles poses the biggest threat to future oil demand.
US pressures the IEA
The IEA projects in both its “announced pledges” and its “stated policies” scenarios that demand for both oil and gas will peak before 2030. These projections have angered US Republicans who worry they will disincentivise investment in oil and gas extraction.
US Energy Secretary Chris Wright called these projections “nonsensical” and said in July that the US will leave the IEA if it cannot reform it.
The IEA has said it will re-introduce a more pessimistic projection, called the “current policy” scenario, to its flagship World Energy Outlook report, to be published alongside other scenarios. According to Bloomberg, a draft of the report shows that this scenario projects oil and gas demand rising into the 2050s.
Greg Muttitt, a researcher at the International Institute for Sustainable Development, wrote in a post on Linkedin that the IEA’s stated policies and announced pledges scenarios’ projections of a pre-2030 oil peak are backed by estimates from oil companies like BP and Equinor, as well as consultancies like McKinsey.
“The US Administration wants people to believe that fossil fuels will have a bright future, hoping that this can become a self-fulfilling prophecy,” he added. “But overly-optimistic fossil narratives lead to economic risks, both for investors and for countries whose economies depend on oil & gas revenues, such as Nigeria and Iraq.”
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IEA says some oil and gas projects must shut early to meet 1.5C limit
Climate Change
Paris Agreement committee names three countries snubbing it over NDCs
Three countries have been named by the Paris Agreement’s compliance committee for failing to submit a nationally determined contribution (NDC) and repeatedly snubbing offers of help with their climate plans.
After months of internal debate over whether to identify serial non-responders, the Paris Agreement’s Implementation and Compliance Committee (PAICC) named the three countries which have failed to engage with it over their NDCs on Friday.
It named Democratic Republic of Congo, Senegal and North Korea in a footnote of its annual report, adding that it decided to name them “with a view to facilitating engagement”, adding that representatives of the three nations had been invited to its meeting in early 2027 “with the purpose of identifying any challenges and constraints”.
“The Committee noted the importance of Parties engaging with the Committee in a timely manner, while noting that some delays may be due to the national capabilities and circumstances of the Parties”, the report said.
In July, PAICC said 12 countries had ignored its repeated attempts to discuss why they had not published an NDC as required every five years under the 2015 Paris accord.
Members of the committee had been divided over whether to name them, but at a September meeting decided to do so in their annual report to the annual climate COP summit.
By the time the report was published on Friday, only Congo, Senegal and North Korea “had not communicated an NDC or submitted a [Biennial Transparency Report] and had not yet responded to any of the Committee’s notifications, despite several reminders issued by the Committee in this regard”.
Rainforest and renewable energy ambitions
The silence from Congo and Senegal is notable because the former is home to much of the Congo Basin rainforest while the latter has sought billions of dollars in climate finance to support its renewable energy ambitions.
After Brazil, Congo has more rainforest than any country in the world. This forest, and the country’s peatlands, absorb huge amounts of greenhouse gas but are fast being lost to expanding farmland, charcoal production, logging and mining.
Senegal signed a Just Energy Transition Partnership with Canada and wealthy European nations in 2023, to help it meet its renewable energy targets under the-then government of Macky Sall. It was chair of the Least Developed Countries group between January 2022 and December 2023.

Tejas Rao, who is researching the PAICC as part of a doctoral thesis at Cambridge University, said the governments of the three countries should engage with the committee.
“Engagement costs these governments very little and the committee has shown it will listen,” he said.
“Silence leaves the committee with no basis to help, and it leaves the [governments] exposed to the narrative that they are simply disengaged,” he told Climate Home News.
Paris Agreement requirement
The 2015 Paris Agreement requires all parties to publish an NDC every five years outlining their emissions reduction targets, with each plan meant to be more ambitious than the country’s last NDC.
The latest set – the third round of plans, with new targets for 2035 – was due in February 2025. While most countries missed this deadline, all but around 30 – mostly small emitters but including Egypt, Vietnam and Argentina – have now submitted them.
Over the year, the PAICC – which is made up of government climate officials from developed and developing countries – has been communicating with governments that have not submitted NDCs and trying to overcome barriers to them doing so.
Some nations have cited exceptional circumstances as the reason for not submitting an NDC, a process that requires a significant amount of work in tracking emissions and consulting on how to curb them across the economy. For example, a letter from a Sudanese official to the PAICC, seen by Climate Home News, said that the country’s civil war had led to the suspension of its NDC preparation.
The US and Iran are not signed up to the Paris Agreement and so do not have active NDCs, nor does Taiwan, which is not a UN member state.
Rao said that because the PAICC is “facilitative and non-punitive”, naming the countries “is meant to open a door, not close one – the invited consultation is the point”.
“In recent months, governments that explained their constraints, whether capacity, finance or domestic process, have been met with follow-up and support rather than sanction, and the number of silent governments has fallen sharply,” Rao said.
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Paris Agreement committee names three countries snubbing it over NDCs


