CLIMATE CHANGE ENERGY EFFICIENCY
GLOBAL GOVERMENT SUPPORT FOR ENERGY [FIGURE 1] SOURCE – IEA – STATE OF ENERGY POLICY 2024
and address effectively. Addressing energy efficiency requires navigating a web of interdependent factors. It is fundamentally a systems problem— one that transcends individual actors or sectors. The lack of coordination between policymakers, utilities, private investors, and consumers has led to piecemeal solutions that benefit only those who can afford the transition. As an example, due to policy changes including the switch to the ECO and Green Deal schemes and insufficient coordination between government bodies, local authorities, energy companies and contractors, the UK went from more than a million homes insulated a year in the 2000s, to just 60,000 in 2022. This fragmented approach has left significant emissions reductions, and resiliency benefits, unrealized, and a human cost that is hard to quantify or accept. Typically, only wealthier households have been able to afford necessary upgrades, such as insulation or low-carbon heating. The poorest 10% of households in advanced economies spend four times as much of their income on energy as the wealthiest 10%, despite consuming half as much energy (IEA – Energy Efficiency 2024). Without systemic reform, energy efficiency risks becoming another dimension of inequality, rather than a universal benefit. However, if we succeed in removing these blockers and increasing demand for the first fuel, the opportunities are transformative. Accelerating energy
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efficiency improvements could deliver over a third of all carbon dioxide emission reductions required by 2030 to align with net zero goals (IEA – Energy Efficiency 2024). The ripple effects extend beyond emissions reductions: households would enjoy lower energy bills, improved health and enhanced comfort, while nations would achieve greater energy security and resilience to price shocks. Moreover, scaling energy efficiency could enable a rapid deployment of other low-carbon technologies, such as heat pumps, by reducing unnecessary investment to cover transitory peaks in capacity requirements. The result
would be faster decarbonization and enhanced grid stability, especially given the global supply crunch we are already feeling relating to electrical and systems engineers. The health, wealth, and resilience benefits would also uplift vulnerable communities globally, creating a fairer and more sustainable energy transition. Key Interventions to unlock and benefit from “the first fuel” To unlock these benefits, international actors should collaborate to identify, share, and blueprint examples of three key interventions:
ANNUAL ENERGY EFFICIENCY INVESTMENT [FIGURE 2] SOURCE – IEA – ENERGY INVESTMENT 2024
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THE FUTURE OF ENERGY
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