IEA Warns the World Is Falling Behind on Critical Energy Efficiency Targets

Technological advancements in the field of energy efficiency have accelerated this year, with global primary energy intensity on course to improve by 1.8% this year, the International Energy Agency reported today.

Last year, global primary energy intensity only declined by 1%, the IEA said, with this year’s acceleration attributable in part to better efficiency gains in some major economies such as China and India.

“The acceleration in global progress on energy efficiency that we’re seeing in 2025 is encouraging, including positive signs in some major emerging economies. 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,” IEA’s chief, Fatih Birol, said.

Even with the accelerated rate of improvements in energy efficiency this year, however, actual gains fall well short of the 4% target set at the COP38 two years ago, the IEA noted. The target is for 2030.

Energy efficiency has been emphasized by proponents of the energy transition as an important part of efforts to reduce the consumption of crude oil, but it has been largely overlooked in favor of power generation from wind and solar, to replace hydrocarbon-sourced baseload generation.

Just last month, the International Renewable Energy Agency warned in a report that the world was moving too slowly on renewable energy and efficiency to meet its near-term climate goals. It highlighted the unsatisfactory 1% rate of improvement in global energy efficiency gains for last year and warned that, despite record wind and solar deployment in 2024, current trajectories fall far short of what is needed to meet the COP28-mandated UAE Consensus targets.

While global renewable capacity additions hit 582 GW in 2024, the UAE Consensus goal of 11.2 TW of renewable capacity by 2030 now implies that annual additions must reach 1,122 GW per year from 2025 onward, which would be a sustained growth rate of 16.6% annually.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com

 

  • Related Posts

    Energean in Exclusive Talks for $1 Billion BP Egypt Gas Deal

    Energean is in exclusive talks to buy a package of BP’s Egyptian oil and gas assets in a deal that could raise about $1 billion for the British energy major,…

    45 Power Plants in India Running on Critically Low Levels of Coal Stocks

    As many as 45 coal-fired power plants in India are currently operating with critically low levels of coal stocks, as electricity demand rises amid the strong El Nino but supply…

    Have You Seen?

    OMV Petrom receives additional 35MW of electrolysers at clean fuel facility

    • August 28, 2026
    OMV Petrom receives additional 35MW of electrolysers at clean fuel facility

    Bangladesh LNG expansion could drive $8.5bn annual import bill, IEEFA warns

    • August 28, 2026
    Bangladesh LNG expansion could drive $8.5bn annual import bill, IEEFA warns

    Waaree Renewable Technologies Secures LOA for 291 MWp Solar PV and 280 MWh BESS Project

    • August 28, 2026
    Waaree Renewable Technologies Secures LOA for 291 MWp Solar PV and 280 MWh BESS Project

    Latin America’s Energy Storage Capacity Set to Reach 34 GW by 2035: Wood Mackenzie

    • August 28, 2026
    Latin America’s Energy Storage Capacity Set to Reach 34 GW by 2035: Wood Mackenzie

    Meritus strengthens Southern California team

    • August 28, 2026
    Meritus strengthens Southern California team

    Jan De Nul enters North Sea CCS market

    • August 28, 2026
    Jan De Nul enters North Sea CCS market

    Søby Solar Park to Supply Renewable Power to Four Companies Under Fixed-Price PPAs

    • August 28, 2026
    Søby Solar Park to Supply Renewable Power to Four Companies Under Fixed-Price PPAs

    IEEFA Finds Renewables Cheaper Than Coal in Indonesia, Urges Least-Cost Power Planning and 100 GW Solar Integration

    • August 28, 2026
    IEEFA Finds Renewables Cheaper Than Coal in Indonesia, Urges Least-Cost Power Planning and 100 GW Solar Integration

    Siemens Energy to spin off Transformation of Industry with view to sale

    • August 28, 2026
    Siemens Energy to spin off Transformation of Industry with view to sale

    Suzlon Breaks Ground on 1,325 MW Wind Projects in Andhra Pradesh, Targets INR 10,500 Crore Investment

    • August 28, 2026
    Suzlon Breaks Ground on 1,325 MW Wind Projects in Andhra Pradesh, Targets INR 10,500 Crore Investment