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Asset values
…This is often known as a “split incentive.” However, evidence from the United States suggests that energy efficiency improvements are associated with reduced vacancy and tenant turnover, which reduces associated transaction costs and provide an incentive for landlords to invest. Need more information? Eichholtz, P. (2024), The Impact of Minimum Energy Performance Standards on the Commercial Real Estate Market.Zitouny, S. (2024), On the capitalization of energy labels on the French housing market.Amaral, F. et al., (2024), Green Signals: Energy Efficiency and German Housing Markets.Pigman, M. (2022), How Does Home Energy Score Affect Home Value and Mortgage Performance?
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Financing the ASEAN Power Grid
The Association of Southeast Asian Nations (ASEAN) has a long history of electricity system connectivity, and the development of the ASEAN Power Grid (APG) is central to achieving a sustainable, secure and affordable energy transition across the region. Delivering the APG will require a significant step‑change in investment over the coming 15 years, and unlocking financing from a diverse range of sources will be essential for this to happen. Yet financing approaches and business models have not evolved at the pace required to support an increasingly ambitious and complex pipeline of interconnector projects.This report examines how interconnectors are approached…
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Demand- and Supply-Side Measures for the Industry Transition
Policy brief As governments look to scale up lead markets for near-zero and low-emissions steel and cement, targeted policy measures can help overcome commercialisation barriers, capture emerging market opportunities and support broader government objectives. This policy brief explores a variety of possible policy instruments to stimulate demand and supply of such industrial materials, providing options that governments could adopt and adapt as part of their industrial policy framework – tailored to their unique circumstances to enhance effectiveness – along with practical next steps towards implementation.
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Advancing Methane Emissions Reductions by National Oil Companies
National oil companies (NOCs) are responsible for around half of all global oil and gas production today and their actions strongly influence methane abatement prospects. More than 30 NOCs have joined the Oil and Gas Decarbonization Charter (OGDC) and are engaging in initiatives to tackle methane emissions and flaring. There is a major opportunity for NOCs looking to implement best practices in methane management to learn from the experience of peers in order to deploy strategies that are adapted and tailored to their circumstances. Best practices include adopting measures to limit flaring and venting, implementing leak detection and repair programmes…
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Jobs
…energy sector jobs are more prevalent in areas with lower unemployment rates. Energy efficiency investments also contribute to enhance the quality of jobs in other industries. Firms that invest in energy efficiency can significantly improve the quality of the working environment, with efficient lighting that provides increased visual comfort, or efficient ventilation systems that enhance air quality. By freeing up businesses’ spending through reduced energy bills, energy efficiency helps minimise cost pressures and supports employers in safeguarding jobs. Need more information? IEA (2020), World Energy Outlook Special Report - Sustainable Recovery.MICAT (2024), Empirical basis factsheet on Economic impacts – Employment effects.
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Gaining an Edge
The Role of Energy Efficiency in Enhancing Competitiveness Energy efficiency delivers more than energy savings and emission reductions – it can also improve the competitiveness of countries and firms. From increased profitability to job 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…
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Health
Multiple benefits of Energy Efficiency 2025 Energy efficiency provides multiple benefits. This page explores health. Why is energy efficiency important for health? Energy efficiency can improve health by creating healthy indoor and outdoor living environments with comfortable temperatures and humidity levels, and improved air quality. Key facts Energy efficiency measures have been linked to improved health, such as fewer respiratory illnesses.Targeted energy efficiency programmes can reduce doctor and hospital visits and save health costs. In New Zealand, a retrofit programme led to a 43% reduction in hospital admissions for respiratory conditions, while a similar programme in Ireland reduced the…
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Vehicle-to-grid technology
…load, including heating, cooling, lighting and appliances. In addition, driving and charging patterns can concentrate demand in time, creating highly variable and difficult-to-predict loads that can lead to congestion and voltage issues in distribution networks. As power systems in many regions simultaneously integrate higher shares of variable renewable generation, maintaining the balance between electricity supply and demand becomes increasingly complex and costly.EVs offer substantial demand side flexibility via smart charging. Beyond this, vehicle‑to‑grid (V2G) technology enables EVs to provide grid‑stabilisation services through bidirectional power flow. Realising this potential, however, requires widespread deployment of V2G‑compatible vehicles and chargers…
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Energy and AI in East Asia
This report was commissioned by the Korea Energy Economics Institute and was carried out jointly by the International Energy Agency (IEA) and the Korea Energy Economics Institute. The study has three objectives in the context of East Asia. First is to explore the possibilities presented by AI for the energy sector. Second is to examine the expected increase in electricity demand by data centres, and the impact on grid planning and operation. Third is to provide policy recommendations for embracing the opportunities presented by the application of AI to energy, as well as policies for proactively managing the challenges presented by…
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Sheltering From Oil Shocks
Measures to reduce impacts on households and businesses The conflict in the Middle East has created the largest supply disruption in the history of the global oil market, due to the near halt in shipping traffic through the Strait of Hormuz. The loss of supply is having significant impacts in global markets, pushing up prices for crude oil above $100/barrel, and leading to much higher prices for some refined products – notably diesel, jet fuel and liquefied petroleum gas (LPG). Concerns are growing about the impacts of higher prices on households, businesses and the broader economy.In this report, the…
