World making progress on energy efficiency, says IEA

2022 has seen significant global acceleration in energy efficiency actions, according to Energy Efficiency 2022, the International Energy Agency’s annual report on global energy efficiency markets and policy.
“Amid today’s energy crisis, we are seeing signs that energy efficiency is once again being prioritized,” said IEA Executive Director Fatih Birol. “Energy efficiency is essential for dealing with today’s crisis, with its huge potential to help tackle the challenges of energy affordability, energy security and climate change.”
Investments in energy efficiency such as public transport, electric car infrastructure and building renovations hit USD 560 billion worldwide in 2022, a 16% increase on 2021. Meanwhile, energy bills in IEA countries are set to come in at USD 680 billion less this year than they would have been if not for investments made since 2000.

According to preliminary data, the global economy used energy 2% more efficiently in 2022 than it did in 2021. This follows two years of stalled progress: annual gains fell to around 0.5% in 2020 and 2021 during the COVID-19 pandemic.

Potential sustainability impact

In order to align with the IEA’s Net Zero Emissions by 2050 Scenario, efficiency improvements need to average about 4% a year this decade, and there is cause for optimism. One car in every eight sold globally is now electric, electrified transport and heating is becoming more common, and sales of cost-effective heat pumps will reach almost 3 million in 2022 in Europe alone (a 200% annual rise).
Alongside the introduction of new building codes in emerging and developing economies, energy-saving awareness campaigns are helping to make energy use more efficient, including in electricity-hungry Southeast Asia where governments are now developing efficient cooling policies.
Advanced economies such as the US, the EU and Japan have also unveiled comprehensive energy efficiency investment programmes for the coming years, but much greater investment is required in the developing world.