The IEA warns of the slowdown in energy efficiency three years in a row

The International Energy Agency (IEA) has warned of the slowdown for the third consecutive year of progress in energy efficiency in the world. It is pointed out that this situation supposes a loss of economic opportunities that moves away from the international objectives focused on limiting climate change.

In its report on energy efficiency published on Friday, the IEA has indicated that last year’s progress was limited to 1.2%, a fairly low figure compared to the 1.7% registered in 2017. This updated figure represents the lowest rate since the beginning of the decade. The situation is even more complicated if one takes into account that the organization set 3% as the minimum target to be met through existing technologies and with profitable investments.

“There is no excuse for inaction: ambitious policies have to be implemented to boost investments and put the necessary technologies to work on a global scale,” said fatih Birol, the agency’s director general.

There are several factors that explain the slowdown in energy efficiency (which measures the ability to increase economic production with the same amount of energy consumed). On the one hand, the increase in demand for fuels by energy-intensive industries, in particular China and the United States. On the other, external climatic factors. In relation to supply, electricity generation from coal increased in both 2017 (3%) and 2018 (2.5%) after three years of stagnation.

There are some structural trends that also weigh on progress from new technologies, such as changes in modes of transport, a greater number of devices in the home and the increase in living space per person. The progression of sales of the most efficient vehicles has slowed, as consumers prefer larger cars and the average number of occupants of vehicles when used is lower.

The 1.2% advance in energy efficiency in 2018 is equivalent to a achieved increase in global GDP of about 1.6 trillion dollars compared to 2017. However, if the minimum target of 3% had been achieved, production would have reached 2.6 trillion, a figure very close to the GDP of the French economy as a whole.

The IEA, which brings together the large energy-consuming countries members of the OECD, insists that energy efficiency improves security of supply by reducing dependence on oil imports and reducing emissions that cause the energy effect.

Advances in energy efficiency between 2000 and 2018 prevented the import of the equivalent of consumption from Germany, Australia and Belgium. In economic terms, Japan saved $20 billion in the purchase of crude oil thanks to a 20% decrease in that period thanks to energy efficiency.

Source: The Vanguard