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Demand and Supply Measures for the Steel and Cement Transition
…among other factors. This has led to relatively slow market growth for near-zero emissions materials, at a moment when reinvesting in long-lived high-emissions production could have repercussions for governments to achieve their stated climate goals. Policy makers have the opportunity to play a decisive role in unlocking markets for near-zero emissions materials. Governments are well-positioned to reduce risk during market formation, and targeted policy measures can provide the certainty that is currently lacking in markets. Furthermore, international collaboration will be vital to make the transition faster and less costly, given the international nature of markets…
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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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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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Universal Access to Clean Cooking in Africa
…This harms health, economic development, and the environment – contributing to 815 000 premature deaths annually and significant deforestation.In a new report, Universal Access to Clean Cooking in Africa: Progress update and roadmap to implementation, the International Energy Agency (IEA) provides an updated picture of where things stand today, where efforts are gaining ground, and where urgent action is still needed. This includes tracking the implementation of the USD 2.2 billion in public and private commitments made at the 2024 Summit on Clean Cooking for Africa, which the IEA co-hosted with the President of the United Republic of…
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Energy savings
…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), Decomposition of change in IEA total final energy use.
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The Value of Demand Flexibility
…system planning and operation. By shifting or adjusting electricity use in response to system conditions, demand flexibility improves the utilisation of existing generation and network assets, reduces peak stress, lowers losses and curtailment, and supports more efficient integration of clean energy. It also delivers wider benefits, including enhanced energy security, lower system and consumer costs, and reduced emissions, when appropriately enabled and valued.The policy brief identifies key trends driving the need for flexibility, the main barriers limiting its uptake, and priority areas for policy action. It concludes that integrating demand flexibility alongside energy efficiency within regulatory, market and planning…
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Scaling Up Transition Finance
…to cut global emissions, especially in areas where clean technologies are not yet commercially available or cost-competitive. This is where transition finance comes in: it can help emissions-intensive countries, companies and sectors shift over time towards sustainable practices that are aligned with long-term climate and development goals.In this new report, the International Energy Agency (IEA) provides analyses to map the landscape for transition finance, explains why it matters, and highlights approaches that could move the debate forward.The report also examines the role of transition finance in the steel and cement, critical minerals, and the natural…
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IEA Guide to Reporting Energy Technology RD&D Budgets
…ensuring consistency and comparability. The manual is divided into two main sections: fundamentals of RD&D budget reporting and a detailed classification of energy technologies. It defines RD&D in alignment with the OECD Frascati Manual and clarifies the scope of public and private sector reporting. It also provides instructions for completing the IEA questionnaire, covering budgetary stages, metadata reporting, and common issues. The classification system spans nine major technology groups, including energy end uses, fossil fuels, renewables, nuclear, hydrogen, CO₂ capture, critical minerals, and cross-cutting technologies. This structure supports accurate data collection and policy analysis, enabling governments and…
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What Next for the Global Car Industry
An Energy Technology Perspectives Special Report The global car industry has operated under relatively stable conditions for decades. The world’s largest car manufacturers are based in the European Union, Korea, Japan and the United States, and – more recently – in China, and the car industry is a major contributor to the economy in these countries. The strength of many of these car makers is built on decades at the forefront of technological innovation around the internal combustion engine (ICE), as well as highly integrated and optimised supply chains that allow for vehicles and their components to be produced at low…
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Affordability
…the energy savings of efficiency measures can be initially lower than expected. In India, time-saving appliance ownership, such as of washing machines or refrigerators, is associated with a 15% increase of employment among women and an increased school attendance by older children.As people gain access to electricity, they acquire new equipment, often starting with light bulbs, followed by televisions, and finally fans, particularly in hot locations. As available power increases and electricity becomes more reliable, refrigerators are installed as well. For many products, such as refrigerators, highly efficient models use less than half of the energy of inefficient…
