INVESTMENTS in improving energy efficiency must triple this decade if the world is to keep the goal of limiting global warming to 1.5ºC within reach, the International Energy Agency (IEA) said today.

The investments would allow a doubling of annual gains in energy efficiency to 4%, resulting in a drop in energy demand and fuel consumption that would benefit consumers and provide greater energy security to nations.

The efficiency gains would “deliver vital reductions in greenhouse gas emissions and at the same time create jobs, expand energy access, reduce energy bills, decrease air pollution, and diminish countries’ reliance on fossil fuel imports – among other social and economic benefits”, the IEA said in a report.

The IEA, which advises nations on policy, hosts an energy efficiency conference today outside Paris, bringing together officials and businesses from over 80 countries.

The agency said if existing government policies on energy efficiency are accelerated and fully implemented, that would cover about three-quarters of the necessary effort to double annual efficiency gains.

And while energy efficiency investments are expected to reach record levels this year of over US$600 billion (RM2.7 trillion), the IEA said growth is slowing due to higher interest rates, saying the level needs to reach US$1.8 trillion by 2030.

“Often, governments don’t give (energy efficiency) as much focus as we think they should,” head of the IEA’s energy efficiency division, Brian Motherway, told AFP last week.

While increased efforts by governments on boosting renewable production is positive, “we think we need more of a focus on how we use it”, Motherway said. – AFP, June 7, 2023.