FAQ on doubling the rate of energy efficiency improvements by 2030
The basics of energy efficiency :
What is energy efficiency ?
Energy efficiency is the amount of energy produced in proportion to the amount of energy used to produce it. Energy efficiency is calculated by dividing the energy obtained (useful energy or energy output) by the initial energy (energy input).
How is energy efficiency tracked ?
Energy efficiency can be measured in many ways. The metric used for tracking economy-wide energy efficiency and the global energy efficiency goal is energy intensity.
What does doubling the rate of energy efficiency improvement by 2030 mean ?
Doubling the rate of energy efficiency improvement by 2030 is a global target using energy intensity as a metric. This goal can be interpreted in two ways: - Doubling the rate of energy efficiency improvement using a 2010 baseline as per SDG7.3: This goal, as first stated in the SDGs calls for a doubling of the rate of energy efficiency using a benchmark of 2010 global energy intensity improvements which sat at 1.7%. Doubling this rate this decade would mean a rate of improvement of 3.4%, on average, annually up to 2030. - Doubling the rate of energy efficiency improvement in alignment with the IEA’s NZE Scenario: In the NZE Scenario global energy intensity falls (improves) by around 4% per year on average this decade (2020 - 2030). As 2022 saw a global energy intensity improvement, on average, of just over 2%, this interpretation is sometimes described as using 2022 as a baseline for the energy efficiency doubling goal.
What are the investments requirements to meet the global goal on energy efficiency by 2030 ?
IEA’s 2022 Energy Efficiency report highlighted that energy efficiency-related investment increases reached record levels in 2022 in response to the energy crisis. Energy efficiency investment increased by 16% to USD 600 billion in 2022 due to government stimulus programmes (e.g. US IRA, REPowerEU, Japan GX) driving spending on efficient buildings and with growing popularity of electric vehicles and heat pumps. However, energy efficiency investments faced significant headwinds in 2023 with rising interest rates and inflation. The IEA modelling estimates that investment in energy efficiency will need to triple by 2030 to nearly $2 trillion USD to reach a target of more than 4% energy intensity improvements.
An Overview of the Energy Efficiency Ecosystem :
What is Mission Efficiency ?
Mission Efficiency was born as the Three Percent Club at the 2019 Climate Action Summit in New York City as a coalition of governments, organizations, and initiatives coming together to accelerate the transition towards energy-efficient economies worldwide at a three percent per year rate of improvement in energy efficiency. The club was rebranded as Mission Efficiency in 2022 at the SEforALL Forum in Kigali Rwanda to be a more inclusive and intuitive initiative that will improve global understanding of energy efficiency and share expertise and resources needed to deliver progress and solutions on energy efficiency and climate action.
What is COP28 global energy package ?
Civil society, the High Ambition Coalition and other progressive voices are calling for a COP28 agreement on goals to triple global renewable capacity and double the rate of energy efficiency improvement by 2030, alongside accelerating fossil fuel phase-out is critical. This will stimulate clean energy investment and help countries to develop ambitious and effective policies and pathways for their just energy transition. An ambitious COP outcome based on consensus will be crucial in tilting the policy and investment landscape to renewables and energy efficiency.
What is the Versailles Statement ?
A recognition from participants (African Union, Angola, Argentina, Australia, Azerbaijan, Brazil, Canada, Costa Rica, Czech Republic, Denmark, Ethiopia, European Commission, Finland, France, Germany, Ghana, Greece, Hungary, Indonesia, Ireland, Israel, Italy, Japan, Kenya, Lithuania, Luxembourg, Mauritania, Mongolia, Oman, Panama, Poland, Portugal, Senegal, Singapore, Slovak Republic, Spain, Sweden, Switzerland, The Netherlands, Togo, Türkiye, Uganda, Ukraine, United Kingdom, United States, Uruguay) that there is potential for the annual energy intensity improvement rate to double from its current level, so as to ensure prosperity and sustainable economic growth and in order to be in line with global climate goals. The statement noted that ambitious actions should be taken by every country across all sectors, taking into consideration different starting points and national circumstances, to lead to an acceleration in overall global energy efficiency progress and to reduce energy demand, where possible. The statement also urged the Parties and all stakeholders at COP28 to raise their ambition and strengthen energy efficiency policy implementation in line with the Paris Agreement, and work towards an energy efficiency pledge at COP28.
How is Mission Efficiency Call to Action and Pledge different from the Versailles Statement?
The Versailles Statement, signed by more than 45 government ministers in June 2023, supported ‘stronger policies and actions towards the goal of putting the world on track to achieving a doubling of the global average annual rate of energy efficiency improvements this decade, in line with the IEA Net Zero by 2050 Scenario’. The Mission Efficiency Call to Action specifically calls for all Parties to the Paris Agreement to support a global goal to double energy efficiency improvements annually through 2030, aligned with the IEA’s Net Zero Scenario. The Mission Efficiency Pledge provides members and partners to pledge a concrete commitment to support and drive delivery on this goal going forwards.