MENA Newswire News Desk: Global investment in energy-efficient technologies has increased by 4% in 2024, reaching a record high of USD 660 billion, according to the International Energy Agency (IEA). The agency’s annual Energy Efficiency 2024 report highlights a steady rise in investment but underscores the need for accelerated policy efforts to meet international efficiency targets.
The report stresses that scaling up these investments can improve energy security, reduce costs, and curb emissions—critical components of the transition to a sustainable energy future. The IEA analysis shows global primary energy intensity, a key metric for efficiency, is expected to improve by approximately 1% in 2024, matching last year’s rate but remaining below the progress seen between 2010 and 2019.
This modest improvement rate presents a challenge to the global climate goals set at last year’s COP28 summit in Dubai, where nearly 200 countries committed to doubling efficiency gains by 2030. This goal would require annual improvement rates to climb from the current 1% to around 4% by the decade’s end.
In response, governments across the globe have introduced or enhanced policies to address energy efficiency, with over 70% of the world’s energy demand now governed by newly implemented or updated regulations. The European Union is advancing efforts toward a zero-emission building stock by 2050 through stringent building regulations.
In China, national efficiency targets were strengthened and appliance standards were upgraded. Meanwhile, the United States revised fuel economy standards specifically targeting heavy-duty vehicles, and Kenya has mandated efficiency-focused building codes for all new constructions.
IEA Executive Director Fatih Birol emphasized the strategic importance of energy efficiency, stating, “Energy efficiency is a key pillar of secure, affordable, and inclusive energy transitions.” He added that the IEA remains committed to collaborating with governments to prioritize efficiency in their policy frameworks. Birol highlighted the availability of technologies necessary for advancing energy efficiency and expressed optimism over recent policy steps but cautioned that broader and more rapid policy responses are necessary.
To meet global climate ambitions, the report recommends that countries adopt more comprehensive efficiency policies and speed up regulatory updates. Current initiatives, though promising, fall short of the accelerated pace needed to achieve the target of a 4% annual efficiency improvement. For example, while the European Union’s 2050 goals are significant, aligning them with global climate objectives will require intensified action and shorter timelines.
The IEA’s findings come at a pivotal time, with increasing energy demand and heightened focus on sustainability. As nations continue to implement policies designed to increase energy efficiency, the report highlights a clear path: rapid and reinforced policy measures coupled with substantial investment in modern, efficient technologies.