- Global energy efficiency will improve by 1.8% in 2025, up from 1% in 2024, as governments implement over 250 new policies.
- Governments must raise policy ambition and close gaps in industry and buildings to meet COP28’s 4% target and maximise energy, economic, and climate benefits.
Global energy efficiency is expected to improve faster in 2025 than in 2024, according to the International Energy Agency (IEA), which announced this on Wednesday, November 19. Governments introduced more than 250 new policies to boost efficiency and cut energy costs.
The IEA’s Energy Efficiency 2025 report indicates that global primary energy intensity is expected to decrease by 1.8% this year, up from 1% in 2024. India and China have shown more substantial progress compared to their average since 2019.
IEA Executive Director Fatih Birol said, “The acceleration in energy efficiency is encouraging. Governments must work harder to ensure more people enjoy the benefits. Efficiency improves energy security, lowers bills, boosts competitiveness, and reduces emissions.”
The report said global efficiency gains averaged 1.3% per year since 2019, down from 2% per year from 2010 to 2019. The current rate remains below the 4% annual target set at COP28 in Dubai in 2023.
The IEA said industry accounts for two-thirds of global energy demand growth since 2019. Efficiency improvements in this sector have slowed. Policymakers lag behind technology in appliances such as air conditioners, which remain less efficient than available models.
The report urged governments to raise their policy ambitions and fill gaps, especially in building efficiency standards, which are currently missing in about half of the countries.
The IEA updated its Energy Efficiency Progress Tracker and added case studies to its Policy Toolkit. These tools help governments adopt best practices and speed up progress worldwide.