Global energy consumption is expected to grow by 56% between 2010 and 2040. The residential, transport and industrial sectors represent 75% of global energy consumption. The manufacturing industry alone accounts for 31% of the global energy use. Additionally, population growth is estimated to reach 9.2 billion by 2050, with a projected 2 billion new energy consumers in emerging economies by the same year.
Improving energy saving and energy efficiency is one of the quickest, greenest, and most cost-effective ways to address energy security and climate change as well as to ensure sustainable economic growth. Based on current projections, worldwide implementation of energy efficiency measures could save over 8 GtCO2/yr by 2030. However, all countries share common interests in improving their energy efficiency performance and there is abundant potential for international cooperation among them.
What is Energy Efficiency and how is it measured?
Something is more energy efficient if it delivers more services for the same energy input, or the same services for less energy input. Energy efficiency improvements may be realized by coordinated action in the following areas:
- Buildings sector: Building envelopes and appliances can be designed to be energy efficient. Constructing energy efficient buildings is also an important component of smart cities and low-carbon zones.
- Industry sector: Well-designed equipment and energy management systems and standards can yield significant energy efficiency gains.
- Transportation sector: Vehicle design and fuel-types used need to be considered. In addition, city planning and transportation system design should be taken into account while implementing energy efficiency policies.
Global Energy Demand by Sector (2012)
Source: IEA, World Energy Outlook (2012)
In addition, the energy efficiency policy framework should consider the following:
- Technical innovations,
- Energy management,
- Energy consumer behavior,
- Finance mechanisms, and
- Awareness and capacity building.
Making Energy Efficiency Realfor further information.
Appliances, buildings, and industries account for a major portion of global energy consumption. Appropriate policies and technical innovations can promote energy efficiency in these and other sectors.
Institutional Capacity Building & Training
Benefits, opportunities and effectiveness of energy efficiency policies can be imparted to decision-markers through capacity building. In turn, this increased awareness can result in improved design, implementation and evaluation of new policies and programs. While supporting implementation of existing policies, training can help identify gaps in existing energy efficiency policies and standards.
IPEEC is actively engaged in capacity building (WEACT, GSEP and EMAK) by concentrating efforts to develop new, meaningful and sustaining partnerships and networks, particularly in industry using energy management systems (EMAK and GSEP). IPEEC also conducts conferences, webinars and publishes newsletters. The resources on its website also help build stakeholder capacity to implement energy efficient measures.
Policies, Regulations & Finance Mechanisms
Effective policies and regulations accelerate market transformation that can improve economy-wide energy efficiency. Voluntary and mandatory measures such as fiscal incentives, standards and labels, performance targets, outreach campaigns as well as capacity building and training programs have facilitated increased market penetration of clean technologies worldwide. IPEEC is working with key stakeholders among its member nations to create incentives for companies or individuals to adopt energy-efficiency measures that will, in the end, enhance green growth.
Successful market transformation is attainable only if appropriate financing mechanisms are in place. The success of tools such as subsidies and grants, microfinance instruments, performance contracting, and energy saving certificate trading, varies from country to country.
Partnerships & Networks
Private sector and government entities along with non-government and international organizations have significant expertise to contribute to energy efficiency policy analysis, project design and management, marketing, program evaluation, etc. Partnerships and networks amongst the stakeholders promote information exchange on effective regulations, market-based instruments and financial instruments. This, in turn, enhances awareness of best practices, lessons learnt from past successes and best available technologies to improve energy efficiency in key economic sectors. IPEEC’s work on energy management systems, industry, appliances and capacity building (GSEP, EMAK, SEAD and WEACT) provides an overview of successful and innovative partnerships amongst stakeholders to achieve significant energy efficiency improvements.