In 2024, the global energy efficiency growth rate will be just 1%. It should reach 4% by 2030. To close the gap, investments in technologies for improving the efficiency of buildings, transport, and industry must be "substantially" increased, rising from $660 billion to $1.9 trillion
The global energy efficiency growth rate is four times slower than needed to meet the 2030 targets set at COP28. In 2024, global primary energy intensity is on track to improve by just 1%, whereas it must increase by 4% annually by the end of the decade.
The world is therefore off track to meet the 2030 energy efficiency goal, but there are positive signs of improvement, especially in the adoption and revision of related policies. This is highlighted in the International Energy Agency’s (IEA) Energy Efficiency 2024 report.
Overall, the global energy efficiency rate remains the same as in 2023. Not only has there been no improvement since COP28 in Dubai, where the commitment was made to double energy efficiency by 2030 (from 2% in 2022 to 4%), but the rate is also half of the average seen in the past decade.
IEA: Faster Implementation of Energy Efficiency Policies Needed
Positive signs are emerging in terms of policy. According to the IEA, countries that have adopted or improved energy efficiency policies now account for 70% of global energy demand.
This trend spans all regions and types of economies. From Kenya, which has made energy efficiency standards mandatory for new buildings, to the EU with the EPBD Directive aiming for a zero-emission building stock by 2050, to China, which has updated appliance standards and strengthened national efficiency goals.
Substantial Investment Increase Needed
However, a significant push is required to align energy efficiency growth with climate goals. Globally, nearly half of new construction does not yet meet efficiency requirements, and energy efficiency regulations for buildings vary greatly from country to country. Similarly, only 60% of industrial electric motors worldwide are subject to minimum energy performance standards.
To achieve the required leap forward, the IEA stresses that investment volumes must be “substantially” increased. In 2024, investments in energy efficiency technologies have grown by 4%, reaching an estimated $660 billion by the end of the year.
While this is a record volume, it is equivalent to the peak reached in 2022, and a 50% increase compared to 2019. To meet the 2030 COP28 targets, global investments in energy efficiency for buildings, transport, and industry must triple, rising from $660 billion to $1.9 trillion by the end of the decade.
