Horse demand famously peaked when cars were just 3 percent of their number, and gas lighting demand peaked when electric lighting was just 2 percent of supply. The consequence of peaking demand for fossil fuels has been playing out for a number of years now, in sector after sector. Peak demand for coal meant lower prices for US coal and the bankruptcy of half the US coal sector. Peak demand for European fossil electricity meant falling wholesale electricity prices, $150 billion of asset write-downs and a collapse in stock prices.
The risk is that fossil fuel demand could bounce back as people reduce their efficiency investments, drive more and buy bigger vehicles, so the role of government now is to stop this from happening. Governments need to remove wasteful fossil fuel subsidies and implement a tax wedge between the falling price that the fossil fuel sector gets and the price that the consumer pays.