According to the Energy Efficiency Market Report 2014 by International Energy Agency (IEA), the global energy efficiency market is worth at least USD 310 billion a year and growing. The report confirms the position of energy efficiency as the world’s “first fuel” and finds that energy efficiency finance is becoming an established market segment, with innovative new products and standards helping to overcome risks and bring stability and confidence to the market.
The report also states that energy efficiency represents the most important plank in efforts to decarbonise the global energy system and achieve the world’s climate objectives: in the IEA scenario consistent with limiting the long-term increase in global temperatures to no more than 2 degrees Celsius, the biggest share of emissions reductions – 40% – comes from energy efficiency.
As the report shows, energy efficiency had the largest percentage improvement in the residential sector, where energy demand reduced by 5% from 2001 levels among the countries analysed. When isolating for the impact of efficiency, energy use would have been 14% lower than 2001 levels. This was driven by efficiency improvements of space heating, water heating, lighting and appliances in residential buildings. Energy efficiency has more than countered growing populations and preferences for larger dwellings in reducing absolute energy use among the countries valuated. Furthermore, the market for energy efficiency improvements in the buildings sector has seen significant government support over the past few years in several of the countries highlighted in the report, including Ireland, Italy, the Netherlands, Canada and Japan.
For further information on the report, or to download the Executive Summary, please visit the relevant IEA website.