Close-up of an electricity meter showing a reading of 7,454.3 kilowatt-hours

    Energy efficiency Making better use of energy – great potential

    The efficient use of energy and of resources to generate energy is an important prerequisite for sustainable energy supply. Worldwide, significant amounts of energy are still lost during generation, transport and consumption. This means there is huge potential for saving energy and reducing the burden on the environment.

    The International Energy Agency (IEA) talks about energy efficiency as the world’s “first fuel”. It has many advantages and huge potential.

    For example, the efficient use of energy lowers operating costs and increases profit margins for businesses. That makes energy efficiency a topic of great interest to the private sector. According to calculations by the IEA, 70% of the reduction in demand for oil and 50% of the reduction in demand for gas which will be needed to reach net zero emissions by the middle of this century could be achieved through increased energy efficiency. A higher level of energy efficiency could also cover more than a third of the emissions reductions needed to meet the Paris climate goals. Furthermore, it is a way to strengthen energy security and improve access to energy, and it can also help curb air pollution. These are all reasons why the efficient use of energy needs to be treated as a priority.

    Global commitments for accelerating energy efficiency

    In order to accelerate this development, at COP28 in Dubai the international community took a ground-breaking decision: it was decided that the rate of improvements in energy efficiency would be accelerated to twice the current pace by 2030. However, in recent years, there have only been slight improvements in energy efficiency. Almost half of all new buildings worldwide are still being built without adherence to any efficiency standards and three out of five industrial machines only meet the lowest efficiency standards.

    Yet there are possibilities for making smarter use of energy in many areas and not all of them require technical innovations. Sometimes all that is needed is a change in consumer behaviour, like switching off the standby function on electrical appliances. Even more efficiency can be achieved by using energy-saving appliances and vehicles that consume less fuel, and by optimising industrial processes. This is particularly relevant for poorer countries, which can put an emphasis on higher levels of energy efficiency in their economic development from the start.

    There are great challenges when it comes to implementation: a lack of funding, inadequate infrastructure, for example in the case of power lines, and a lack of know-how are just some of the obstacles standing in the way of higher energy efficiency in developing countries and emerging economies. The BMZ therefore focuses its support for partner countries on, among other things, providing advice on new legislation and standards, investing in energy-efficient grids, and implementing programmes to improve energy efficiency in the private sector.