Energy efficiency can provide significant job creation, as well as mitigate climate and security risks by lowering energy demand. It also provides a cost-effective buffer against supply shocks.
In selected IEA countries, increased economic activity pushed energy use up in recent years, but efficiency improvements counteracted most of this increase, resulting in cost savings. Efficiency measures also increase access to energy services by reducing the price of products such as refrigerators, enabling more people to afford them.
Buildings
The building sector is the second largest energy consuming segment of the economy and accounts for a third of global greenhouse gas (GHG) emissions. The sector offers a substantial opportunity to reduce GHG emissions and improve the economic and social well-being of its occupants through effective energy efficiency measures.
The main building components that consume large amounts of energy are space heating, cooling, ventilation, lighting and water heating. Active efficiency measures focus on improving the energy performance of these systems through improved design, equipment selection and operation.
Many buildings have poor energy efficiency. This can be due to design or construction, human behavior or a combination of both. Inefficient buildings consume significantly more energy than they need to. Changing this can be difficult. However, efficient buildings that are properly maintained can often save energy by reducing occupants’ electricity consumption and air conditioning demand. They may also benefit from using renewable energy to provide heating, cooling and hot water.
Transportation
Transportation is responsible for about 17% of global oil use and generates significant amounts of greenhouse gases and other pollutants that affect human health and ecosystems. It is also expensive for families and businesses, and it disproportionately impacts low income communities and people of color.
Energy efficiency in transport is the useful travelled distance (of passengers or cargo) divided by the energy put into the propulsion means, expressed as passenger-megajoules per kilometre or freight-tonne-km. The energy input might be rendered in liquid fuels, electrical energy or food energy.
Increasing the efficiency of vehicles, public transport and walking/biking, can decrease energy demand and help reduce reliance on fossil fuels. It can also accelerate progress towards a low-carbon economy.
Industrial
Industrial facilities are responsible for a large share of energy consumption, but with the right strategies and technologies, they can drastically reduce their waste. From building a dedicated Energy Management Team to conducting energy audits to implementing smart technologies, industrial facilities can optimize their processes and take advantage of cost savings and reduced environmental impact.
While new technologies and renewable energy systems get most of the attention, it’s important to remember that many of the simplest, cost-effective energy efficiency tips and strategies work just as well in industrial settings. These include reducing hot water and steam usage, examining motor system performance, and adopting basic manufacturing practices.
The significance of these energy-saving tactics goes far beyond curtailing energy costs and boosting productivity, as they can reduce overall environmental footprints and support sustainable and environmentally conscious business practices. For instance, lowering consumption can help businesses comply with new, more stringent environmental standards. These changes also show customers and stakeholders that the company takes its responsibility to the environment seriously, bolstering brand reputation.
Residential
Residential energy efficiency measures can be effective in helping households save money and reduce greenhouse gas emissions. These benefits are particularly powerful for low-income households and those living in rural areas.
An energy efficient home means more than just new appliances and insulation. It’s about a complete approach to home design and construction. This includes lighting, draught proofing, insulation and the way the home is used by its residents. It also means a smart thermostat that optimizes energy consumption based on occupancy and household habits.
Local governments can help promote and support energy-efficient products and services through various programs and incentives such as sales tax holidays, cash rebates, ENERGY STAR certification, a HOME Energy Advisor program, and building code requirements. They can also coordinate with electric and gas utilities, home builders, trade groups (e.g., home inspectors, home energy raters, contractors), product retailers, and other stakeholders to develop and market these programs. The residential sector contributes about 17% of global greenhouse gas emissions, and energy efficiency can dramatically reduce these emissions.