Efficiency progress too slow to meet climate goals

Global energy efficiency progress is recovering in 2021 to pre-pandemic levels, but it remains well short of the pace needed for a net zero pathway, according to the latest analysis from the International Energy Agency.

The IEA’s Energy Efficiency 2021 report states that the rate of improvement needs to double from current levels to match the gain outlined in the its Net Zero Emissions by 2050 Scenario.

The report is urging governments to take the lead in mobilising the required increase in investment. A rapid expansion of technologies that drive more efficient use of energy across the economy is necessary to keep global climate pledges within reach. Total annual investment in energy efficiency worldwide needs to triple by 2030, says the report, to be consistent with a path towards reaching net zero emissions by 2050.

In 2021, global energy intensity – a key measure of the economy’s energy efficiency – is expected to improve (that is, to fall) by 1.9 per cent after improving by only 0.5 per cent in 2020. While this is line with the average annual rate of improvement over the past 10 years, it remains below the 4 per cent needed to help put the world on track to reach net zero emissions by mid-century.

The IEA’s report comes shortly after the end of the COP26 Climate Change Conference in Glasgow, whose final statement specifically called for the rapid scaling up of energy efficiency measures, recognising their key role in decarbonising energy systems.

“We consider energy efficiency to be the ‘first fuel’ as it still represents the cleanest and, in most cases, the cheapest way to meet our energy needs,” said IEA executive director Fatih Birol. “There is no plausible pathway to net zero emissions without using our energy resources much more efficiently.”

As energy efficiency offers some of the fastest and most cost-effective actions to reduce CO2 emissions, front-loading efficiency measures into net zero strategies will be crucial for closing the gap between climate ambitions and current trends. This year’s report examines over 40 energy efficiency milestones mapped out in the IEA Roadmap to Net Zero by 2050 that can enhance efficiency and help get emission reductions on track.

In addition to well-developed energy efficiency policies such as appliance standards, the report also underlines the increasingly important role for digital technologies in energy efficiency’s future. Rapid uptake of digitally connected devices is helping to expand the scale and scope of benefits from energy efficiency, and can deliver a cheaper, easier and more cost effective clean energy transition.

Energy Efficiency 2021 can be accessed here.