France: According to the International Energy Agency (IEA), it is crucial for annual investments in improving energy efficiency to triple by 2030 to keep global warming under 1.5 degrees Celsius. IEA’s report, Energy Efficiency: The Decade for Action, revealed that global energy efficiency investment hit a record high of $600 billion in 2022, driven by spending on buildings and strong electric vehicle sales.
However, the IEA warns that the year-on-year growth rate in 2023 is expected to be lower due to the high cost of capital. This puts a strain on potential new projects. In 2023, the projected investment stands at $624 billion which indicates a slight increase from the previous year.
Therefore, to achieve the ambitious goal of doubling annual energy efficiency progress to 4 percent by 2030, the IEA emphasizes the need for investment in the sector to soar to over $1.8 trillion by that time.
The agency highlights the multiple benefits of such a significant investment. In addition to crucial reductions in greenhouse gas emissions, this level of progress would also generate 12 million jobs globally by 2030. Furthermore, it would support faster advancements toward universal access to modern and affordable energy in emerging and developing economies.
Additionally, doubling efficiency progress by 2030 would not only contribute to global energy security but also extend access to electricity to more than 800 million people, according to the IEA.
“Importantly, more efficient and lower energy demand supports faster progress towards universal access to modern and affordable energy in emerging and developing economies,” the IEA’s report states.
The International Energy Agency’s call for augmented investment in energy efficiency underscores its crucial role in combatting climate change. Moreover, through substantial investments and collaborative endeavors among governments, businesses, and individuals, the path toward a more sustainable and resilient future becomes increasingly apparent.