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Global actions on energy efficiency have accelerated this year as part of governments’ and individuals’ efforts to tackle fuel supply disruptions and record energy prices.
That’s according to the latest market report by the International Energy Agency (IEA), which estimates that global investment in energy efficiency, including building retrofits, electric vehicle infrastructure and public transport, reached $560 billion (£455bn) this year.
This translates to a 16% increase compared to the money invested in 2021.
The Paris-based intergovernmental organisation found that thanks to the progress made on energy efficiency since 2000, total energy bills in IEA countries this year are set to be $680 billion ($553bn) less than they would have been otherwise.
However, the IEA has called on governments to prioritise efforts to improve energy efficiency.
It said that efficiency improvements need to average about 4% a year this decade to align with the IEA’s 2050 net zero scenario.
IEA Executive Director Fatih Birol said: “The oil shocks of the 1970s led to a massive push by governments on energy efficiency, resulting in substantial improvements in the energy efficiency of cars, appliances and buildings.
“Amid today’s energy crisis, we are seeing signs that energy efficiency is once again being prioritised. Energy efficiency is essential for dealing with today’s crisis, with its huge potential to help tackle the challenges of energy affordability, energy security and climate change.”