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Space Cooling
Country and regional highlights
Updated energy efficiency standards and new policies target emissions associated with space cooling
CO2 emissions
Progress on efficiency and power decarbonisation have not been sufficient to curb emissions growth from rising space cooling demand
Energy
In 2022 energy consumption for space cooling further increased by more than 5% from 2021
Activity
More than half of floor area additions to 2030 will occur in areas of the world with a high need for space cooling
Policy
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Bioenergy with Carbon Capture and Storage
Country and regional highlights
The United States launches a first-of-its-kind purchasing programme for CDR, while funding support and certification efforts emerge in Europe
CO2 capture
Despite increasing awareness around the importance of BECCS for reaching net zero, deployment remains low
Technology installation and infrastructure
Lead times for BECCS projects depend heavily on the application and destination of the CO2
Innovation
Policy
Investment
Investment in BECCS is growing across applications
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Light Industry
Country and regional highlights
Important investment programmes are being deployed to push energy efficiency and decarbonisation in light industries
CO2 emissions
While light-industry emissions have declined since 2010, a more rapid decline is needed to get on track with the NZE Scenario
Energy
The share of fossil fuel use is declining, but progress needs to accelerate
Technology deployment
Firms should prioritise technologies for low-emission process heat and increased energy efficiency
Innovation
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Rail
Country and regional highlights
Europe targets modernisation of the rail network and India rapid electrification, while China is expanding its network with a focus on high-speed rail
CO2 emissions
Rail is the least emissions-intensive mode of passenger transport – its expansion will help reduce overall emissions
Energy
Expansion of electric trains continues rapidly in the NZE Scenario, particularly to replace diesel-powered freight trains
Activity
Innovation
Policy
Acknowledgements
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Demand Response
Country and regional highlights
Notable progress to advance demand response is being made
Activity
Demand response markets are expanding, but greater effort is needed to align with the Net Zero Scenario
Technology deployment
Enabling technologies offer high flexibility potential, although deployment is still lagging
Innovation
Innovative solutions and approaches are being tested to expand residential participation in demand response
Policy
International collaboration
Acknowledgements
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Appliances and Equipment
Standards and labelling can lift the average rate of energy efficiency improvement by two to three times
Based on global evidence from countries with Energy efficiency standards and labelling (EES&L) programmes, the average energy efficiency of new major appliances in these countries can increase two to three times the underlying rate of technology improvement. This can result in average energy reductions of 10-30% over 15 to 20 years in the stock of most regulated products across all countries.
In leading countries with strong regulations and long-running programmes which are regularly updated, the contribution could be much higher…
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Heat Pumps
Heat pump sales stalled in 2023 as household budgets were squeezed
Global sales of heat pumps decreased by 3% in 2023 after two consecutive years of double-digit growth fuelled by the energy crisis. This slowdown reflects broader aversion to large-ticket purchases among consumers amid higher interest rates and inflation. Heat pumps are a large investment for households, and sales are particularly sensitive to borrowing costs and consumer sentiment.
At the same time, natural gas prices have mostly declined from their peaks in 2022, highlighting the need to tilt energy tariffs and taxes in favour of cleaner consumer choices…
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Methane Abatement
Global energy-related methane emissions remain near record highs
In recent years, many countries and companies have set targets to reduce methane emissions, with commitments now covering over half of global oil and gas production. However, methane emissions from the energy sector plateaued near record highs in 2025 – revealing a large implementation gap.
Still, there is significant scope for further action. Around 70% of fossil fuel methane emissions in 2025 came from the top 10 emitting countries. Meanwhile, the methane intensity of oil and gas production varies widely across countries – with the best performers scoring more than 100 times better…
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Direct Air Capture
Country and regional highlights
The United States is leading the race on policy support for DAC
CO2 capture
DAC plants currently operate on a small scale, but with plans to grow
Energy
How can we capture CO2 directly from the atmosphere?
Innovation
A small but growing DAC technology portfolio is emerging
Supporting infrastructure
DAC deployment for carbon removal relies on the availability of low-carbon energy sources and CO2 storage
Policy
Government support for DAC is growing in major markets
Investment
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Heating
The energy crisis has marked a turning point for residential gas demand in Europe
Heating is a significant driver of global energy demand, both in buildings and in industry, and is an important component of energy expenditure for households, especially in colder climates. Many households use natural gas to warm their homes, provide hot water and to cook. Residential and commercial gas demand dropped by more than 15% in 2022 compared to the year before. While 40% of the decline in residential and commercial demand in Europe can be attributed to weather-related factors (reduced space heating needs due to…