Energy efficiency improvement rating: what is the current situation according to the IEA?
According to the latest figures from the International Energy Agency (IAE), the energy efficiency improvement ratings need to be greatly accelerated if the climate targets agreed and ratified by most EU member states are to be reached by 2030.
This parameter plays an essential role in the fight against climate change, as it influences security, costs and greenhouse gas emission levels. However, despite global efforts, there is still a long way to go to deliver the best results.
The importance of doubling the rate of progress
At COP28, almost 200 nations agreed to the target of doubling the global energy efficiency improvement rate, in other words to try to raise it from 2% in 2022 to 4% by 2030. This implies that better results must be achieved using existing technologies and processes, without increasing energy consumption.
Basically, the increased efficiency rate would be manifested through factors such as:
- more sustainable cities;
- new job opportunities;
- and a positive impact on quality of life.
As mentioned in the IEA’s annual report ‘Energy Efficiency 2024’, it is apparent that regardless of the progress made so far, this figure currently remains at 1%, or half the level recorded between 2010 and 2019. This pace of improvement is  not sufficient to reach the agreed objectives, so a much greater combined effort by member states will be required.
Interesting global policy initiatives
In the European Union, updated legislation is already in place to allow zero emission targets for buildings to be reached by 2050, while other non-European nations are also introducing or reinforcing policies designed to improve energy efficiency. Here are some examples:
- China: new standards for domestic appliances and more ambitious national targets;
- United States: stricter rules on fuel saving by heavy vehicles;
- Kenya: a compulsory building code to make buildings more efficient.
Despite these important developments, several governments need to accelerate the introduction of such policies considerably and increase their scope as much as possible. In order for energy efficiency to keep up with growing energy demand, existing measures need to be made much more stringent.
The spread of more efficient technologies is a key factor in speeding up progress. Heat pumps and electric vehicles for example, offer significant energy savings compared to traditional technologies. Furthermore, the best air conditioners on the market can reduce total running costs by up to 40% compared to inefficient models.
Investment in technologies such as those mentioned above is rising and is forecast to reach 660 billion dollars for 2024 (an increase of 4% on the previous year). Although these systems can have quite high initial costs, their overall running cost is often lower, making them an attractive choice from both an economic and an environmental point of view.
Monitoring, future challenges and opportunities
In order to ensure steady progress, the EIA has introduced an Energy Efficiency Progress Tracker. This tool provides daily updated analyses of energy intensity, electricity requirements and levels of electrification. This is an addition to the IAE’s political toolkit, providing governments with practical indications to help improve efficiency.
As mentioned above, some considerable challenges remain. Doubling the rate of improvement will require:
- substantial increases in investment in efficient infrastructure and technological research;
- quicker and more coordinated political action with a special focus on more energy-hungry sectors.
Efforts made so far have shown that the energy efficiency improvement rate is an achievable target, with benefits far beyond savings, which include a positive effect on the economy and on sustainability. However, considering that the current pace is not sufficient, more ambitious policies and the contribution of society as a whole will be necessary in order to reach global targets.
Translated by Joanne Beckwith