The IEA Net Zero Emissions by 2050 Scenario (NZE) sees the average annual rate of global energy intensity (i.e., energy use per unit of GDP) improvement – a key measure of the economy’s energy efficiency – doubling from around 2% achieved between 2010-2020 to just over 4% from 2020-2030. With accelerated action, the global economy by 2030 could be around one-third more energy efficient than in 2020.

Doubling the current rate of energy intensity improvement from 2% to just over to 4% per year over the next decade could help avoid an extra 5 Gt of emissions per year by 2030 compared with a scenario with no extra major push by policymakers. This provides around one-third of all emission reductions seen in the NZE Scenarioю

To support stronger action on efficiency the IEA has designed a policy toolkit for governments, launched at the IEA’s 7th Annual Global Conference on Energy Efficiency in June 2022. The toolkit provides a practical approach to accelerate action on energy efficiency by guiding governments in the design of effective policy measures, the support of policy decisions and the delivery of policy actions.

The toolkit comprises two parts: The first is ten strategic principles, based on the recommendations of the Global Commission for Urgent Action on Energy Efficiency, that bring together key learnings from global experience as to how to maximise the positive impact of all energy efficiency policies and programmes. The second is a set of sectoral policy packages that highlight the key policies available to governments, and how they can be integrated into an effective overall coherent suite of policies and actions to deliver faster and stronger efficiency gains.

The first part: 

1. Prioritise cross-cutting energy efficiency action for its economic, social and environmental benefits

An all-of-government approach, prioritising cross-cutting action, will maximise energy efficiency gains throughout all sectors of society, enhancing social and economic development, energy security and resilience, and accelerating decarbonisation of the energy sector.

2. Act to unlock efficiency’s job creation potential

Energy efficiency can quickly deliver job growth and can continue to be a long-term, sustainable employment sector. Capacity building and skills development are essential to effective policy implementation.

3. Create greater demand for energy efficiency solutions

Efficiency action will be most rapidly scaled up through a focus on increasing demand for efficient products and services and enabling greater levels of market activity.

4. Focus on finance in the wider context of scaling up action

Mobilising finance is an essential element of efficiency action, and policies aiming to do so will be most effective if they are part of a broad, coherent approach to driving market scale, combining measures to increase demand with actions to remove investment barriers, creating market conditions to attract and increase private sector investment.

5. Leverage digital innovation to enhance system-wide efficiency

Policymakers can take advantage of the potential of digital innovation to enable smart control, better energy management and wider energy system optimisation. Policies can enable and incentivise new solutions while also protecting consumers and system security.

6. The public sector should lead by example

Governments leading through investment in public sector efficiency and driving innovation and higher standards will build experience, markets, knowledge and confidence in energy efficiency solutions.

7. Engage all parts of society

Implementation of energy efficiency action needs to happen at all levels of society, with cities, businesses, and local communities all playing a particularly important role in its success.

8. Leverage behavioural insights for more effective policy

People are at the centre of energy efficiency action, benefitting from greater access, lower costs and more comfortable, healthier environments. Consumer behaviour plays an important role and insights from behavioural science can help design smarter, more effective policies.

9. Strengthen international collaboration

International collaboration and exchange of best practices allow countries to learn from each other and to harmonise approaches and standards where appropriate. This can speed up the implementation of energy efficiency policies and the transformation of markets.

10. Raise global energy efficiency ambition

Benefits from energy efficiency policies are greatest when the ambition is high, capturing the significant untapped potential to deliver economic, energy and environmental benefits.

The second part (below on the webpage):