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Energy efficiency investment worldwide tops $1 trillion in 2 years

Business and Finance

If the current rate of progress can be continued in the coming years, 2022 could mark a turning point for energy efficiency, which is one of the key areas for international efforts to achieve carbon neutrality by 2050.

Energy efficiency investment worldwide tops $1 trillion in 2 years

Governments around the world have raised about $1 trillion in energy efficiency-related activities between 2020 and 2022. This is reported by the International Energy Agency in its Energy Efficiency 2022 report.

Global recovery costs around the world, tracked by the IEA Sustainable Recovery Tracker system, have increased significantly as governments have increased investment in clean technologies since 2020 and responded to the global energy crisis triggered by Russia's invasion of Ukraine.

Approximately $270 billion in direct government spending, and another $740 billion in private and other fundraising.

B Overall, these energy efficiency investments account for about two-thirds of total public and private recovery spending globally between 2020 and 2023.

Accumulated funds target areas such as building thermal retrofits, industrial energy efficiency projects , development of public transport, infrastructure projects, as well as support for the use of electric vehicles j.

The International Energy Agency is convinced that energy efficiency is the first and best response to the global energy crisis caused by Russia's invasion of Ukraine, which has dramatically increased concerns about energy security and the impact of rising energy prices on the economy and the well-being of people around the world. world.

“Energy efficiency has again become a priority. The development of this area is necessary to overcome the current crisis, as its huge potential helps to cope with the challenges of energy affordability, energy security and climate change,” said IEA Executive Director Fatih Birol.

Energy efficiency improvements should average about 4% per annum during this decade to meet the IEA's Net Zero Emission by 2050 Scenario.

There are encouraging signs of progress. The electrification of transport and heating is accelerating: one in eight cars sold globally is now electric, and in Europe alone, record sales of almost 3 million heat pumps are expected in 2022 (up from 1.5 million in 2019) as they become economically efficient source of heating.

Existing and new building codes are being strengthened in emerging economies. There has also been a growing wave of energy efficiency education campaigns helping millions of citizens better manage their energy use.

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