The world needs to double progress on energy efficiency between now and 2030 as part of efforts to improve energy security and affordability while keeping the goal of limiting global warming to 1.5 °C within reach, says a report by the International Energy Agency (IEA).
According to the energy agency, under current expected and announced policies, efficiency-related investment is projected to rise by a further 50 percent. However, to see annual progress double, investments in the sector must increase from $600 billion today to over $1.8 trillion by 2030.
The global energy agency said that ramping up annual energy efficiency progress from 2.2 percent today to over 4 percent annually by 2030 would deliver vital reductions in greenhouse gas emissions and at the same time create jobs, expand energy access, reduce energy bills, decrease air pollution, and diminish countries’ reliance on fossil fuel imports – among other social and economic benefits.
IEA added that energy efficiency investment in 2023 is expected to reach record levels, despite a slowdown in year-on-year growth as the high cost of capital weighs heavily on potential new projects.
During IEA’s 8th Annual Global Conference on Energy Efficiency, 700 people from more than 80 countries, including over 30 ministers and 50 CEOs, in Versailles convened to address how to accelerate energy efficiency improvements. The event was co-hosted by Agnès Pannier-Runacher, France’s Minister for Energy Transition and Fatih Birol, executive director, of IEA, and is being organised in partnership with Schneider Electric.
“Today, we are seeing strong momentum behind energy efficiency. Countries representing over 70 percent of the world’s energy consumption have introduced new or improved efficiency policies since the global energy crisis began over a year ago,” Fatih Birol, executive director, Birol said.
“We now need to push into a higher gear and double energy efficiency progress by the end of this decade. I believe this major global conference, which I am delighted to co-host with Pannier-Runacher, can be a vital impetus for accelerating ambition and action.”