Global investment in energy efficient technologies surged by 4% in 2024 – and is on course to reach a record $660 billion, according to a new analysis by the International Energy Agency (IEA).
Doubling global rate of improvement will require countries to accelerate policy implementation, which would improve energy security, reduce energy costs and lower emissions, stated IEA in its report, titled 'Energy Efficiency 2024.'
The IEA’s annual report on energy efficiency developments around the world finds that global primary energy intensity – a measure of efficiency – is set to improve by around 1% in 2024. This is the same rate as in 2023, and around half of the average rate between 2010 and 2019.
At the COP28 climate change conference in Dubai last year, nearly 200 countries agreed to the goal of doubling the rate of progress, which would mean increasing it from 2% in 2022 to 4% by 2030.
The new IEA report shows that governments worldwide are making policy progress, with those representing more than 70% of global energy demand implementing new or updated efficiency policies in 2024.
The European Union, for example, revised regulations to achieve a zero-emission building stock by 2050; China overhauled appliance standards and strengthened national targets for efficiency; the US tightened its fuel economy standards for heavy-duty vehicles; and Kenya made its building code mandatory to ensure all new buildings are more efficient.
However, to align with global targets, fresh policies need to arrive more quickly around the world, and many existing ones need to be tightened, according to the report.
"Energy efficiency is a key pillar of secure, affordable and inclusive energy transitions. The IEA is working closer than ever with governments around the world to ensure that it remains a top policy priority," remarked its Executive Director Fatih Birol.
"Fortunately, the policies and technologies to accelerate efficiency progress are readily available today, and many governments are taking important steps forward. What we hope to see now is faster and stronger policy responses across the globe," he added.-TradeArabia News Service