An International Energy Agency (IEA) report has indicated that, while global progress on energy efficiency is improving, it is not advancing at the speed required to meet key climate targets.
The Energy Efficiency 2025 report shows an expected improvement of 1.8% in 2025, which is an increase from approximately 1% in 2024.
This rate of progress has, however, fallen to an average of 1.3% per year since 2019 – way short of the 4% annual improvement target set at COP28, which is to be met by 2030. For the construction sector, this presents both a challenge and a major commercial opportunity.
“The acceleration in global progress on energy efficiency that we’re seeing in 2025 is encouraging, including positive signs in some major emerging economies,” says Fatih Birol, Executive Director of the IEA. “But our analysis shows that governments need to work even harder to ensure efficiency’s full range of benefits are enjoyed by as many people as possible.
“Energy efficiency has the power to enhance people’s lives and livelihoods through greater energy security, more affordable bills, improved economic competitiveness and lower emissions.”