A turbo charged and unified global platform for energy efficiency can deliver $2tn in annual energy cost savings by 2030 including $650bn for households.
- The global energy efficiency goal is significantly off track, and a major reason for continued growth in fossil fuel demand despite strong renewables growth [1], with consequences for the economy and climate.
- The target is to double the global average annual rate of energy efficiency improvements by 2030 which would mean improving efficiency by 4% per year. The actual rate has been stuck at around 1% in recent years. To reach 4% would require triple the investment but would deliver $2tn in annual energy cost savings by 2030 including $650bn for households [2].
- A unifying platform led by the UAE [3] could draw together the many sectoral initiatives, leaders, and platforms already delivering results to embed energy efficiency at the core of the global climate response.
- Brazil can invite the UAE and MDBs to contribute their solutions to the efficiency gap into this year’s Action Agenda and offering collaboration with the Global Coalition of Energy Planning (GCEP) [4] spearheaded by Brazil.
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The UAE Consensus established at COP28 includes three co-dependent global goals that are essential for limiting global warming to 1.5 degrees Celsius, one of which is 2xEE – to double the global average rate of energy efficiency improvements by 2030.
For energy efficiency, what matters now is convergence, momentum, and delivery.
Households, businesses and countries feel fast benefits from energy efficiency measures. Efficiency improvements have reduced energy import dependency by 20% and enhance grid stability by reducing peak demand. Energy efficiency improvements in SMEs can pay for themselves in as little as 1 year on average – when improved productivity and resource use and reduced waste are added to energy cost savings. In investment terms, energy efficiency costs half as much to deploy per unit of energy saved as power generation and grid build-out does per unit of energy supplied. At the same time, it permanently reduces energy bills.
Five priority areas for technical energy efficiency can deliver close to one-third of the energy savings needed to meet the doubling energy-efficiency goal by 2030. Electrification of heating, industry and transport, and changing in behavioural patterns are expected to deliver the remaining savings. These priority areas relate to industrial motor efficiency standards, appliance efficiency standards, building renovation, mandatory energy codes for new buildings, fuel economy and electric vehicle efficiency standards.
At the same time investment levels need to significantly rise and multilateral development banks have a major role to play, more so in emerging markets and developing economies.
A twin track approach can help to achieve the energy efficiency goal
- Leadership from nations successfully pursuing energy efficiency in specific sectors, pledging to do more for themselves and to support neighbours with the backing of international initiatives they are already activity engaged in. Our case studies of leading nations include ASEAN, Brazil, India, and Kenya.
- A reorientation of climate finance from multilateral development banks (MDBs) for energy efficiency to turbo charge technical assistance, through governance support and capacity building that empowers countries to act more quickly on the five priority areas identified above.
Call for action on a unified platform agreed at COP30
To accelerate action as COP30 approaches, there is a near-term opportunity for the UAE and Brazil to follow through on energy efficiency’s rise up the global climate agenda by drawing together the many sectoral initiatives, leaders, and platforms already delivering results to spread successful action more rapidly.
The Global Energy Efficiency Alliance (GEEA), launched by the UAE to support implementation of the doubling goal, can serve as a unifying platform to enable this. GEEA can also work closely with Brazil’s Global Coalition for Energy Planning to ensure energy efficiency becomes fully embedded in the planning and financing of the wider energy transition.
By inviting countries that have demonstrated leadership in specific sectors to become early Alliance members and energy efficiency mentors, while raising the ambition of their NDCs, the GEEA could help convene a focused coalition to collectively advocate for a reorientation of climate finance with MDBs, in turn, responding with pledges to scale technical assistance for energy efficiency.
GEEA stakeholders, led by the UAE and Brazil, now have a unique opportunity to shape this momentum and embed energy efficiency at the core of the global climate response.
Quotes
Lisa Fischer, Assistant Director, Energy Transition, E3G, said:
“This is a unique opportunity for Brazil and UAE to embed energy efficiency at the core of the global climate response by drawing together sectoral initiatives, leaders, and platforms already delivering results, to spread successful action more rapidly and create a turbo-charged and unified global platform for energy efficiency.”
Available for comment
Lisa Fischer (EN, DE), Associate Director, Energy Transition, E3G: (gas, energy diplomacy & geopolitics, renewables, fossil fuels) m: +44 (0)7710 167 754 | lisa.fischer@e3g.org
Notes to Editors
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Additional notes and references
[1] BP (2025) BP Energy Outlook 2025 edition
[2] IEA (2022) The value of urgent action on energy efficiency
[3]UAE’s announcement of the Global Energy Efficiency Alliance at COP29 in Baku.
[4]Global Coalition of Energy Planning hosted by IRENA https://www.moei.gov.ae/en/media-center/news/21/6/2025/uae-chairs-global-energy-efficiency-alliancehttps://www.irena.org/News/pressreleases/2025/Jan/IRENA-to-Host-Secretariat-for-Global-Coalition-on-Energy-Planning
