A new report from the International Energy Agency (IEA) finds that global progress on energy efficiency needs to double to put the world on track to meet midcentury net zero emissions goals. The rate of energy efficiency progress will need to increase to at least 4% global annual improvement, according to the report. Meeting this target would reduce energy bills by one-third, create 4.5 million jobs and avoid more than 7 billion metric tons of carbon emissions—which the IEA says would put us on track to reach net zero by 2050.
Doubling progress is necessary and achievable
According to the IEA report, 90% of countries have achieved a 4% improvement on energy efficiency at least once in the last decade. In fact, the U.S. hit 4% annual improvement in 2023. However, very few countries have been able to maintain that rate over a multiyear period. This year, the global average rate dropped to 1.3%, reflecting mixed progress across countries and countervailing factors like extreme heat and more energy-intensive lifestyles.
Reaching the 4% annual target will require accelerating investment in and deployment of energy efficiency improvements. The IEA estimates global annual investment would need to triple from current levels to more than $1.5 trillion per year through 2030 to meet the target.
The IEA report identifies key global action areas to increase energy efficiency, including:
- Improving technical efficiency such as better building construction and energy-efficient retrofits, as well as improved appliance efficiency.
- Electrifying end uses such as heat pumps in buildings.
- Improving behavioral efficiency such as changing thermostat set points to reduce operational energy demand.
https://www.usgbc.org/articles/progress-energy-efficiency-must-double-meet-global-climate-goals
