Jakarta — On the eve of the COP28 climate conference, the International Energy Agency (IEA) has released its latest market report, “Energy Efficiency 2023,” urging nations to double their efforts in energy efficiency to meet the imperative 1.5 °C goal and achieve net-zero emissions by 2050.
The report applauds the progress made in energy efficiency policies globally in 2023, the agency stated in a press release. However, it stresses that the pace of improvement is insufficient to align with international climate targets.
Since the onset of the global energy crisis triggered by Russia’s invasion of Ukraine, investments in energy efficiency have surged by 45% since 2020. In the past year alone, countries representing 75% of global energy demand have fortified or introduced new energy efficiency policies.
Despite these strides, the report notes a slowdown in global improvements in energy intensity, a crucial measure of energy efficiency. Factors contributing to this deceleration include the rebound of energy-intensive sectors like petrochemicals and aviation, coupled with heightened demand for air conditioning during what is projected to be the hottest year on record.
The IEA’s analysis underscores that to achieve the necessary net-zero emissions by 2050, annual improvements in energy efficiency must double, rising from 2% in 2022 to over 4% per year on average between now and 2030. However, in 2023, global energy intensity improved by only 1.3%, falling far short of the target.
IEA Executive Director Fatih Birol stressed the critical nature of doubling energy efficiency progress: “The world’s climate ambitions hinge on our ability to make the global energy system much more efficient. If governments want to keep the 1.5 °C goal within reach while supporting energy security, doubling energy efficiency progress this decade is critical.”
The IEA’s call for a global commitment to doubling energy efficiency improvements is one of its five pillars for a successful outcome at COP28. Other key actions include tripling global renewable energy capacity, commitments from oil and gas companies to clean energy transitions, increased clean energy investment in emerging markets, and ensuring the orderly decline of fossil fuel use.
While the global rate of efficiency improvements has slowed, some nations have made substantial gains. The European Union is set to achieve a 5% improvement in 2023, following an 8% improvement in 2022. The United States is also on track for a 4% improvement this year.
The report emphasises that consistent and widespread efficiency gains are essential to drive down emissions, especially given the anticipated global growth in electricity demand. Achieving the doubling target by 2030 would create 4.5 million more jobs, significantly reduce home energy bills, and lower global carbon dioxide emissions by over 7 billion tonnes — equivalent to the emissions from the entire global transport sector today. (nsh)
