WASHINGTON (dpa-AFX) - A key measure of global progress on energy efficiency is set to accelerate in 2025, according to the latest annual update from the International Energy Agency. This is a sign of improving momentum in an important area for strengthening energy security and economic competitiveness while reducing energy costs and emissions, IEA said.
Energy Efficiency 2025, the IEA's annual report on efficiency trends around the world, finds that global primary energy intensity - the main metric for tracking efficiency progress - is on course to improve by 1.8 percent this year, up from just 1 percent in 2024. Preliminary estimates indicate that several key economies such as India and China, are showing some indications of stronger progress compared with their average since 2019.
The rate of global improvement in energy efficiency has been largely lacklustre since 2019, averaging around 1.3 percent per year. That is down significantly from the average of around 2 percent per year recorded between 2010 and 2019.
'The acceleration in global progress on energy efficiency that we're seeing in 2025 is encouraging, including positive signs in some major emerging economies. But our analysis shows that governments need to work even harder to ensure efficiency's full range of benefits are enjoyed by as many people as possible,' said IEA Executive Director Fatih Birol.
The new IEA report identifies where governments are strengthening action and also analyses the key trends that are holding back faster progress. For example, around two-thirds of global final energy demand growth since 2019 has been concentrated in industry, a sector where energy intensity progress has slowed sharply in recent years.
Policies are also lagging technology progress, leaving significant savings on the table, not least for devices such as air conditioners. Increased access to air conditioners has brought major improvements to millions of people's quality of life around the world. At the same time, their rising use has pushed up cooling-related electricity demand. Most of the air conditioners sold worldwide are well below the most efficient models available, adding unnecessary costs to people's energy bills, the report notes.
It also says that around half of countries globally still do not have efficiency standards for new buildings, including in regions experiencing rapid growth.
To increase visibility on energy efficiency and support stronger progress, the IEA has updated its Energy Efficiency Progress Tracker alongside the report - extending the analysis of Energy Efficiency 2025 to provide detailed insights via the most up-to-date regional data.
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