Energy efficiency as catalyst for sustainable energy

Paris-based International Energy Association (IEA) has released its 2018 report on energy efficiency and posits that efficiency gains alone could allow the world to extract twice as much economic value from the energy it uses compared to today.

If the principles of energy efficiency are integrated into national policies and drive corporate operations, IEA believes it would reduce energy bills for consumers by more than $500 billion dollars per year, lower energy imports and cut air pollution in cities which is a key issue for many countries.

It said a global effort to deploy the right energy efficiency policies could, on its own, see greenhouse gas emissions peak quickly and then fall even as the global economy doubles between now and 2040.

The report sets out a vision for 2040 with 60 percent more building space and 20 percent more people, and double global GDP, while using only marginally more energy than today and cutting greenhouse gas emissions by 12 percent. Delivering this vision requires an immediate step up in policy action. For example, countries would need to continue to push up the efficiency of both cars and trucks, building on the progress made in recent years.

Another priority is the efficiency of air conditioners, as highlighted in the IEA’s recent report The Future of Cooling. This demonstrated that air conditioners could be twice as efficient as they are today with the right policies in place. Global investment in energy efficiency will need to rise significantly, but this investment will pay back threefold through energy savings alone.

IEA’s report comes in the wake of the new report by the Intergovernmental Panel on Climate Change (IPCC) that reminds us that global greenhouse gas emissions need to peak quickly and then decline for the world to meet its commitments under the Paris Agreement. Energy efficiency and bioenergy – two areas where the IEA has been shining a light recently – are both critical to this effort.

For this to be effective, governments and businesses would need to drive the initiative. The report outlines a global strategy focused on what governments can do to capture the economic, social and environmental benefits of enhanced energy efficiency.

Three key actions were identified as capable of delivering the most positive impact. This includes improving the efficiency of buildings and industry. It also highlights the importance of areas such as aviation and shipping, where energy efficiency is becoming increasingly important.

Fatih Birol, the IEA’s Executive Director, said while various countries are endowed with different energy resources – whether it is oil, gas, wind, solar or hydropower – every single country has energy efficiency potential.

Efficiency can enable economic growth, reduce emissions and improve energy security. Birol said the study shows that the right efficiency policies could alone enable the world to achieve more than 40 percent of the emissions cuts needed to reach its climate goals without requiring new technology. This is due to the critical importance of energy efficiency in building a secure and sustainable future, the IEA considers it the ‘first fuel’ and facilitates the exchange of best practices among advanced and emerging economies.”

However an analysis of recent trends shows that energy efficiency policy efforts have weakened in recent years. Fewer new standards and policies were introduced in the past two years. This has contributed to the acceleration in energy demand growth that was observed in 2017. This is why it is calling on governments including Nigeria to enact the right kind of energy efficiency policies.

ISAAC ANYAOGU