The International Energy Agency (IEA) has highlighted the imperative to triple annual investments in energy efficiency by 2030 to effectively combat global warming and keep the temperature rise below 1.5 degrees Celsius.
In its report titled “Energy Efficiency: The Decade for Action,” the IEA emphasizes that global investment in energy efficiency needs to reach $600 billion annually by 2022, driven primarily by robust spending in electric vehicle production and sales.
However, the IEA warns that the year-over-year growth rate of this investment is expected to decline in 2023 due to high costs, potentially impacting the initiation of new projects. While investments are projected to increase to $624 billion by that year, the growth rate will not match that of 2022.
During the IEA’s 8th Annual Global Conference on Energy Efficiency held in Paris, France, the agency released a report underscoring the need to double the progress in energy efficiency, aiming for a 4% annual increase by 2030. Achieving this target would require investment in the sector to rise from $600 billion to over $1.8 trillion by 2030.
The report emphasizes that the focus should be on reducing energy demand and enhancing efficiency, as this would facilitate faster progress in providing affordable and sustainable energy access to emerging and developing economies worldwide.
The IEA’s 8th Annual Global Conference on Energy Efficiency, held on June 7-8, aimed to accelerate efforts in the field of energy efficiency, bringing together experts and stakeholders in Paris, France.
As the world grapples with the challenges of global warming, the call to triple investments in energy efficiency serves as a crucial reminder of the urgent actions required to mitigate climate change and foster a sustainable future.