Greater energy efficiency can benefit countries at all stages of development, but particularly fast-growing economies trying to achieve universal energy access with limited resources. By offering cost-effective opportunities to avoid new energy supply, energy efficiency is increasingly recognised as the “first fuel”.
Greater energy efficiency can benefit countries at all stages of development, but particularly fast-growing economies trying to achieve universal energy access with limited resources. In developed countries, while 2010 energy use was around 20% higher than in 1974, it would have almost doubled without the savings made by energy efficiency investments. By offering cost-effective opportunities to avoid new energy supply, energy efficiency is increasingly recognised as the “first fuel”.
Globally, enhanced energy efficiency investments could boost cumulative economic output by US$18 trillion to 2035, increasing growth by 0.25–1.1% per year. Cooperation to raise energy efficiency standards for appliances, lighting, vehicles, buildings and industrial equipment can unlock energy and cost savings, expand global markets, reduce non-tariff barriers to trade, and reduce air pollution and GHG emissions.
The Global Commission on the Economy and Climate recommends that G20 and other countries converge their energy efficiency standards in key sectors and product fields to the global best by 2025, and that the G20 establish a global platform for greater alignment and continuous improvement of standards. To support further action on energy efficiency, international organisations, with business and national governments, should work towards internationally accepted product definitions, metrics for energy efficiency, test protocols, and better information provision. Gradually raising and aligning national efficiency standards could reduce annual GHG emissions by 4.5–6.9 Gt CO2e by 2030.
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Seizing the Global Opportunity