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Multiple Benefits of Energy Efficiency
As energy efficiency continues to gain attention as a key resource for economic and social development across all economies, understanding its real value is increasingly important. The multiple benefits approach seeks to expand the perspective of energy efficiency beyond the traditional measure of energy savings by identifying and measuring its impacts in full bloom.
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Designing Energy Efficiency Policies to Enhance Affordability
…designing energy efficiency policies that support affordability, particularly in the buildings sector.As part of this work, the IEA conducted a survey with G7 governments to better understand the obstacles they face. On the consumer side, major challenges include the landlord-tenant split incentive, high upfront costs and administrative complexity. On the supply side, governments identified skills shortages and difficulties in reaching underserved communities.The report analyses the affordability-focused energy efficiency policies of G7 countries. These include targeted financial support, simplified programme design, strong local delivery models, and better integration with workforce development. Embedding affordability into energy efficiency policy…
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Energy Efficiency 2025
Market Report Energy Efficiency 2025 is the IEA’s primary annual analysis on global energy efficiency developments, showing recent trends in energy intensity and demand, investment, employment and policy. The report provides sector-specific analysis on industry, buildings, appliances and transport and explores system-wide themes such as emissions reductions, energy security, affordability and competitiveness. This report is launched in parallel with an update to the IEA Energy Efficiency Progress Tracker, which can be accessed through the IEA website.
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Energy savings
…compensated for the increase in energy use due to increased activity, such as home building and increased home sizes. In the transport sector, most efficiency improvements were realised in passenger vehicles – around one-sixth of the total. These energy savings were higher than the increased demand due to the rising number, frequency and distance of people travelling. Efficiency improvements in freight transport, such as trucks, drove around 1% of the total energy savings. This was lower than the rise in freight transport activity over the same period. Need more information? IEA (2025), Energy End-uses and Efficiency Indicators.IEA (2023…
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Energy Management for Industry
Driving efficiency implementation This report demonstrates the value of energy management for industry and governments. It illustrates how more systematic approaches to energy efficiency can contribute to ensure continual, durable, and increasing improvements that support competitiveness and energy security. It shows how new advances in energy management, such as increased digitalisation and artificial intelligence, can provide further benefits at speed and at scale. Building on best practices and innovative approaches, the report provides policy guidance on effective policy packages, giving insights into possible actions for policy makers irrespective of the maturity of existing programmes.
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Tracking SDG7: The Energy Progress Report, 2025
…United Nations Climate Change Conference (COP28) to triple global renewable power capacity and double the global average annual rate of improvement in energy efficiency by 2030, and through the 2025 Dar es Salaam Declaration to expand electricity access, a declaration endorsed by 48 African countries.Scaling up clean cooking and electricity access, boosting renewable energy use, and improving energy efficiency are essential for the achievement of the goals of SDG 7—and for meeting the development and socioeconomic environmental and socioeconomic challenges reflected in the SDG agenda as a whole. These goals will demand a fundamental shift in energy production…
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Gaining an Edge
…creation, energy efficiency helps firms compete amid high costs, growing demand, and rising trade pressures. In today’s global context, energy efficiency is not only a matter of energy policy, but also of economic policy.The report analyses historical progress in industrial energy efficiency and its role in enhancing industrial competitiveness. It includes comparisons of firm-level energy efficiency, identifying performance gaps and opportunities for further improvement. Drawing on a new IEA survey of 1 000 firms across 14 countries, it provides insights into industry perspectives. The report also highlights emerging opportunities in energy efficiency markets and offers recommendations for policymakers…
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Competitiveness
…shown to lead to improved product quality and consistency, contributing to brand reputation.Improved resource use, such as reduced equipment downtime and unplanned shutdowns, lower maintenance costs, and potentially reduced staff requirements for operation and monitoring. Efficiency has also been shown to increase worker health and safety, reducing the incidence of work-related accidents and health insurance costs.Reduced waste production, such as less use of materials and process water.Combined, these multiple benefits can more than double the benefits of energy cost savings. Need more information? IEA (2025), Gaining an Edge: The Role of Energy Efficiency in Enhancing Competitiveness.
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Economic growth
…impact of energy efficiency policies on macroeconomic performance still needs to be better understood and systematically measured, studies have highlighted some economic benefits:Growth in economic activityVarious studies have modelled the impact of select energy efficiency policies on economic activity and found a positive correlation. In Canada, an analysis of the country’s policy package at the time found that every USD 1 spent on energy efficiency programmes would generate between USD 4 and USD 7 in GDP between 2017 and 2030. In the United States, a study funded by the Department of Energy estimated that doubling energy productivity could…
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Health
…in an analysis of the Warmth and Wellbeing Scheme, participants report that the improved efficiency of their homes reduced the number of doctor visits by 50% and lowered hospital admissions by 40%.In addition to physical health, energy efficiency can also lead to improvements to mental health, thermal comfort, and safety: Mental healthStudies show that thermal discomfort and fuel poverty have negative mental health impacts – such as anxiety, stress and depression – and that efficiency improvements can improve this. The impact on mental health may be enhanced if combined with financial support mechanisms and strong community engagement.Thermal comfortRetrofits that include…
