IEA: Global progress on energy efficiency picks up in 2025
Baku, November 20, AZERTAC
Faster rate of improvement than 2024 and more than 250 new policy actions signal renewed momentum as governments seek to enhance energy security and economic competitiveness, according to the official website of the International Energy Agency (IEA).
A key measure of global progress on energy efficiency is set to accelerate in 2025, according to the latest annual update from the IEA, a sign of improving momentum in an important area for strengthening energy security and economic competitiveness while reducing energy costs and emissions.
Energy Efficiency 2025, the IEA’s annual report on efficiency trends around the world, finds that global primary energy intensity – the main metric for tracking efficiency progress – is on course to improve by 1.8% this year, up from just 1% in 2024. Preliminary estimates indicate that several key economies, such as India and China, are showing some indications of stronger progress compared with their average since 2019.
The rate of global improvement in energy efficiency has been largely lackluster since 2019, averaging around 1.3% per year. That’s down significantly from the average of around 2% per year between 2010 and 2019.
“The acceleration in global progress on energy efficiency that we’re seeing in 2025 is encouraging, including positive signs in some major emerging economies. But our analysis shows that governments need to work even harder to ensure efficiency’s full range of benefits are enjoyed by as many people as possible,” said IEA Executive Director Fatih Birol. “Energy efficiency has the power to enhance people’s lives and livelihoods through greater energy security, more affordable bills, improved economic competitiveness and lower emissions.”
The global rate of improvement currently falls well short of the goal of 4% by 2030 that was set at COP28 in Dubai in 2023 where nearly 200 governments agreed to work together to double the global average annual rate of energy efficiency improvements by 2030.
The new IEA report identifies where governments are strengthening action and also analyses the key trends that are holding back faster progress. For example, around two-thirds of global final energy demand growth since 2019 has been concentrated in industry, a sector where energy intensity progress has slowed sharply in recent years.
Policies are also lagging technology progress, leaving significant savings on the table, not least for devices such as air conditioners. Increased access to air conditioners has brought major improvements to millions of people’s quality of life around the world. At the same time, their rising use has pushed up cooling-related electricity demand. Most of the air conditioners sold worldwide are well below the most efficient models available, adding unnecessary costs to people’s energy bills.
Policies form the basis for faster progress, and countries can accelerate efficiency improvements in two ways. First, governments can raise the ambition of existing policies. As technology improves, many policies have not kept pace, and ambition varies widely among countries. Second, important policy gaps still need filling. Around half of countries globally still do not have efficiency standards for new buildings, including in regions experiencing rapid growth. Identifying and closing specific policy gaps, with a priority on where energy use and savings potential are the highest, can help countries accelerate progress.
To increase visibility on energy efficiency and support stronger progress, the IEA has updated its Energy Efficiency Progress Tracker alongside the report – extending the analysis of Energy Efficiency 2025 to provide detailed insights via the most up-to-date regional data. To further help policymakers, the IEA has added new case studies to its Energy Efficiency Policy Toolkit, which contains best practice examples of policies from sectors around the world.
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