In its annual World Energy Outlook report released on Thursday, the International Energy Agency (IEA) projects that global emissions will peak in 2025, as energy prices surge due to the Russia-Ukraine conflict.

"As a result, a high point for global emissions is reached in 2025," the IEA said. "As coal demand peaks in the next few years, natural gas demand reaches a plateau by the end of the decade, and oil demand reaches a high point in the mid‐2030s before falling slightly."

The drop in Russian fossil fuel exports will transform the global energy landscape for decades and can help to hasten a green energy transition, the IEA said on Thursday.

The report also acknowledges the economic hit from reduced supplies of Russian oil, natural gas and coal but is keeping an environmental best case scenario in which no investment in new fossil fuel projects is needed.

(With input from Reuters)