We will need to double our energy efficiency targets if we are to limit global warming. The new IEA report

Double the global pace of investment in energy efficiency by 2030.

This is the objective that according to the IEA is necessary to achieve in order to limit global warming to +1.5 hectares C.

At the 8th Global Energy Efficiency Conference, bringing together the world’s leading energy policy leaders, The IEA highlights the urgent need to rethink progress on energy efficiency and to double annual policy actions to improve energy security and reduce greenhouse gas emissions.

Energy efficiency: 1.8 trillion dollars investment needed

The paper presented by the IEA at the Conference with global leaders, entitled "Energy Efficiency: the decade for action", highlights that increasing the annual progress of energy efficiency from the current 2,2% to over 4% by 2030 would lead to significant reductions in greenhouse gas emissions and the creation of new jobs.

This would expand access to energy, reduce energy bills, reduce air pollution and countries' dependence on fossil fuel imports.

Already in 2023 there will be some improvements in this regard. Under the current planned and announced policies, efficiency investments are expected to increase by a further 50%.

However, to see annual progress double, investment in the industry must increase from the current $600 billion to over $1.8 trillion by 2030.

In order to actively improve and support all actions that have a major impact on energy efficiency, the IEA has developed a set of policy tools, including:

• 10 strategic principles based on the Global Commission recommendations for urgent action on energy efficiency, which bring together key lessons on how to maximize the impact of policies on energy efficiency programs;
• Sectoral policy packages aimed at developing actions to integrate energy efficiency into all countries' policy programs.

The role of policy in energy efficiency objectives

The policy will play a key role in improving the energy efficiency of countries in the short, medium and long term.

The RePowerEU Plan in Europe, the Inflation Reduction Act in the US, and Japan’s Green Transformation (GX) initiative are examples of countries renewing efforts to deliver the energy efficiency agenda.

IEA Executive Director Fatih Birol said: "Today we are seeing a strong boost in energy efficiency. Countries that account for over 70% of the world’s energy consumption have introduced new or improved efficiency policies since the global energy crisis began more than a year ago. Now we need to go a step further and double the progress in energy efficiency by the end of this decade."

Download the full report of the International Energy Agency.