Energy demands are growing in tandem with the global population and wealth. The biggest growth in energy demand in the coming decades will be in fast-growing urban centers in Asia and Africa. In many of these countries, energy sources are still primarily fossil-based, directly linking energy consumption to a global temperature rise. Exacerbating the issue is the widespread use of secondhand appliances and equipment that consume excessive amounts of energy. The transition to renewable energy sources is stressed from the urgency to mitigate global warming and the rapidly growing energy demand.

Energy efficiency is a cost-effective way to rapidly reduce some of the energy demand, without compromising access to modern energy for the most disadvantaged populations. “Energy efficiency represents around 40% of the greenhouse gas reduction potential that can be realized at a cost of less than EUR 60 per metric ton of carbon dioxide equivalent.” (McKinsey report) Adoption of energy efficiency at scale also generates other co-benefits such as employment creation. Despite the benefits, there are barriers to large-scale implementation of energy efficiency initiatives.

The session provided some entry points to overcoming these barriers. Speakers provided insights from their work in addressing technical, policy and finance barriers to promote energy efficiency in different sectors and geographical contexts.