One year after the ambitious pledge at COP28 to double the rate of energy efficiency improvements by 2030, the International Energy Agency (IEA) reports that countries are still falling short of this target. According to the IEA's latest Energy Efficiency 2024 report, the current pace of improvement in global primary energy intensity, a key measure of efficiency, is expected to hold at around 1% for 2024. This rate mirrors that of 2023 and falls significantly short of the 4% annual improvement needed by 2030, as agreed upon at COP28.
The IEA report underscores the importance of enhancing energy efficiency across various sectors, from buildings and vehicles to industrial processes. Improved efficiency not only helps reduce greenhouse gas emissions but also lowers energy bills for consumers, enhances energy security, and contributes to healthier, more sustainable cities. Achieving these gains would require significant upgrades in the efficiency of everyday technologies and greater innovation in energy use within industries.
In a bid to align more closely with global targets, governments worldwide have made some policy advancements. Countries accounting for over 70% of global energy demand enacted new or updated efficiency regulations in 2024. For instance, the European Union has set a goal to achieve a zero-emission building stock by 2050, while China has strengthened its appliance standards and national efficiency targets. The United States has revised fuel economy standards for heavy-duty vehicles, and Kenya has made its building code mandatory to improve the energy efficiency of new constructions. Despite these steps, however, the IEA stresses the need for faster policy adaptation and even stricter measures to stay on track with the COP28 goals.
“Energy efficiency is a key pillar of secure, affordable, and inclusive energy transitions,” stated IEA Executive Director Fatih Birol. He emphasized that the policies and technologies necessary to achieve these efficiency improvements are already accessible. While there has been significant policy progress, Birol urged for even stronger and faster action to meet global goals.
In conjunction with the Energy Efficiency 2024 report, the IEA has launched the Energy Efficiency Progress Tracker. This tool offers in-depth, region-specific insights on energy intensity, demand trends, and electrification levels, providing governments with valuable data to shape their policies. Additionally, the IEA continues to release annual Energy Efficiency Policy Toolkits, aimed at guiding global leaders in adopting effective measures to accelerate progress.
The report highlights promising trends, particularly in emerging economies and in the adoption of heat pumps and electric vehicles. These technologies generally consume much less energy than their traditional counterparts, offering efficient solutions that can drive down global energy demand.
However, substantial investment remains critical for meaningful progress. Investment in energy-efficient technologies rose by 4% in 2024, reaching an unprecedented $660 billion. According to IEA analysis, efficient technologies, such as advanced air conditioners, often result in significant long-term savings. Over their lifespan, these efficient systems can reduce total costs by up to 40% compared to less efficient models, underscoring the economic benefits of investing in energy efficiency.
As countries continue to face the dual challenges of climate change and energy demand, the IEA’s findings serve as a call to action. While progress has been made, the journey towards the 2030 target will require intensified global efforts, innovative policies, and sustained investment in energy-efficient technologies.
