Global energy efficiency has seen a modest annual increase of approximately 1.3% since 2019, well below the ambitious target of 4% set for 2030. At the recent Conference of Parties 28 (COP28) in Dubai, close to 200 governments made a historic promise. More than 150 countries to date have committed to at least doubling the global average annual energy efficiency improvement rate by 2030. This commitment further exemplifies our urgent, global need for innovative energy efficiency solutions. There is no time to waste and even more so with the trajectory we are on.
It is no secret that the global energy efficiency landscape has seen ups and downs through the years. From 2010-2019, that growth was especially strong, averaging almost 2% annually. Since then, growth has come to a standstill, marking a serious concern for policymakers and industries across the board. The analysis report which brought these findings to light reiterates the urgent call for a recommitment to do whatever it takes to achieve the goals set in COP28.
Challenges in Achieving Targets
The report points to an important blind spot. Global final energy demand growth is more and more focused on the industrial sector. Out of all sectors, this one has taken the biggest hit, seeing the least amount of progress on energy intensity improvements in recent years. As industries continue to grow and change, their work often requires new, cutting-edge solutions to build on energy efficiency initiatives and go even further.
Today, only one in two countries has adopted minimum energy efficiency requirements for new buildings. Even though this is great news for the environment, the absence of tough regulations in most areas holds back meaningful advancement across the board. Without clear, strong standards and mechanisms for enforcement, meeting the 26-28 percent target by 2030 is an uphill battle.
This major commitment announced at COP28 should be a galvanizing flagpole around which countries of all stripes align to emphasize faster and deeper energy efficiency improvements. To truly make change and implement effective policies and practices, we’ll need to work across sectors and levels of government to realize this promise. Policymakers and stakeholders should make targeted investments to develop technology and infrastructure that encourages energy-saving measures while decreasing waste and misuse.
The Road Ahead
Countries need to adopt strategies that are evidence-based and outcome-driven to achieve at least a 4% annual improvement. This remains crucial as we head into 2030. This means leaning into emerging technologies, improving public education around energy efficiency, and encouraging collaborative models between government and the private sector.
Moreover, making inroads into the industrial sector’s challenges will be an important bellwether for advancing economy-wide progress on energy productivity. Industries must be encouraged to adopt cleaner technologies and practices while being held accountable for their energy consumption levels.