IEA releases 2018 Energy efficiency report
On October 19, 2018, the International Energy Agency (IEA) released a report entitled "Energy efficiency 2018-Analysis and Prospect to 2040" (Energy Efficiency 2018: Analysis and Outlooks to 2040). According to the report, the efforts made by countries around the world on energy efficiency policies have weakened in recent years, and the rate of improvement in energy efficiency is slowing down, resulting in an increase in the growth rate of energy demand in 2017.

The report outlines a global strategy, identifies the policies needed to implement them, and calls for global efforts to deploy the right energy efficiency policies to achieve rapid peak greenhouse gas emissions and double the global economy by 2040. The main conclusions of the report are as follows:
Although progress has been made in energy efficiency, the growth of energy demand is accelerating
After two years of slow growth, global energy demand grew by 2% in 2017. In 2017, global energy intensity fell by 1.7%, the smallest improvement in a decade.
Without progress in energy efficiency, the demand for energy will be even greater. Since 2000, energy efficiency gains in the world's major economies, particularly in their industrial and construction sectors, have offset about 1x3 increase in energy use. Globally, energy efficiency improvements since 2000 have reduced energy use by 12 per cent in 2017.
2. Energy efficiency can bring huge economic, environmental and social benefits
IEA proposes an efficient World scenario (Efficient World Scenario,EWS) that identifies the policies and actions needed for energy efficiency gains. The report clearly demonstrates the potential to improve energy efficiency by assessing the results of implementing all energy efficiency policy measures based on existing energy-saving technologies from 2018 to 2040.
In an efficient world scenario, the global economy will double in size by 2040, but greenhouse gas emissions will be reduced. Energy-related greenhouse gas emissions will peak by 2020 and then fall by 12 per cent by 2040. In 2040, energy efficiency improvements could provide about 40 per cent of emission reductions.
An efficient world scenario will help to achieve the United Nations Sustainable Development goals (SDG) and create multiple benefits for the economy, families and the environment. The improvement in global energy intensity will grow at an annual rate of more than 3 per cent, well above the 2030 energy efficiency target. Improved energy efficiency will improve energy security by reducing imports of coal, oil and natural gas. Improved energy efficiency will reduce household energy use, and households worldwide are expected to benefit from reduced energy spending (about $550 billion). Compared with the current, the efficient world scenario will also reduce the emissions of key air pollutants such as sulfur dioxide, nitrogen oxides and particulates by about 1 stroke 3.
3. It is very important to realize large-scale investment in energy efficiency.
In an efficient world scenario, all investment opportunities are highly cost-effective and will bring significant economic benefits. EWS requires that investment in energy-efficient technologies double between now and 2025, and then double again after 2025. In terms of energy savings, the average return on this investment is about 1 pound 3.
Global investment in energy efficiency is not on the scale required by EWS. In 2017, energy efficiency investment increased by just 3% in all industries, to $236 billion.
In an efficient world scenario, new financing mechanisms are crucial in providing investment opportunities. In order to encourage broader investment policies are needed to support alternative financing mechanisms and business models such as energy services companies green banks and green bonds.
Policy efforts to improve energy efficiency are slowing down
The current pace of progress in implementing energy efficiency policies is not fast enough to realize the potential benefits of EWS. Achieving EWS also requires increased enforcement of mandatory performance policies, which increased only slightly in 2017. The proportion of global energy use covered by mandatory performance policies and regulations increased from 32 per cent in 2016 to 34 per cent in 2017.
5. Improving the efficiency of emerging economies is the key to the realization of EWS.
Increased efficiency will halve the energy intensity of emerging economies by reducing the impact of growing levels of activity on energy demand. IEA is working closely with six major emerging economies-Brazil, China, India, Indonesia, Mexico and South Africa-to improve global energy efficiency. Since 2000, the energy demand of these six countries has increased rapidly, accounting for 1 / 3 of the total global energy demand. In an efficient world scenario, it is possible for these countries to double their economies by increasing their primary energy demand by only 24%. More than 40% of energy savings will come from the industrial sector, and the rest will be shared equally between the transport industry and the construction industry.
6. Government policy is the key to unlocking the energy efficiency potential of EWS.
The efficient world scenario shows that energy efficiency can bring significant economic, social and environmental benefits, but it requires more policy action by the government. An efficient world scenario means achieving energy efficiency in many industries, but it is also recognized that improvements in energy efficiency and changes in existing systems will take time. However, there is an urgent need to start strengthening policy actions immediately based on the existing experience of various industries. Among them, regulatory measures will continue to play an important role.
7. The current transport efficiency policy lays the foundation for EWS.
In the area of transport, the efficient World scenario emphasizes accelerating the improvement of energy efficiency and striving to keep the total energy demand basically unchanged on the premise of doubling the level of activity. Transport is the industry with the greatest energy-saving potential in the world, but its energy efficiency has improved at the slowest pace compared with construction and industry since 2000. Fuel efficiency standards are the core policy of the transport industry to improve energy efficiency.
The efficient world scenario shows that about 4 percent of passenger cars currently meet energy efficiency standards. However, by 2040, there is still room for improvement in energy efficiency. By strengthening policy support and promoting the best hybrids, the average fuel efficiency of 2040 vehicles can be as efficient as the best hybrids. EWS also shows that electric vehicles are likely to account for more than 40 per cent of the world's passenger cars by 2040, meaning policies that encourage the use of electric vehicles around the world will be crucial.
For road transport, trucks can provide more than 40 per cent of the potential energy savings for EWS, but further policy action is needed to achieve this goal. Truck fuel consumption accounts for about 40% of the total road traffic fuel consumption, and this proportion will continue to increase with the increase of truck activity range and the slowdown of energy efficiency improvement. The current policy has laid the foundation for improving the energy efficiency of the road transport system in the future, but there is still room for improvement in the coverage and strictness of the policy.
The efficient world scenario also demonstrates the importance of non-road transport (air, rail and shipping), and the new policy will create opportunities for energy efficiency of non-road transport in the future. In order to achieve the global carbon reduction target, the shipping sector has developed a carbon emissions trading scheme to promote energy efficiency. In addition, innovations in aviation management and technology, as well as improvements in flight routes, will also contribute to sustained improvements in energy efficiency.
8. efficiency in the field of construction is increasing, but more comprehensive policies are needed.
In the field of construction, energy efficiency per unit of floor area in an efficient world scenario will be nearly 40% higher than the current level. By 2040, the global floor area will be expanded by 60% on the current basis, but thr




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