Global Investment in Energy-Efficient Technologies Hits $660 Billion in 2024, According to IEA Report

Global investment in energy-efficient technologies has surged by 4% in 2024, on track to reach a record $660 billion, the International Energy Agency (IEA) reported in its annual “Energy Efficiency 2024” report.

The report emphasizes that to meet global energy efficiency goals, countries must accelerate policy implementation. Doubling the global rate of energy efficiency improvements is critical, the IEA stated, highlighting the potential benefits of such measures, including enhanced energy security, reduced energy costs, and lower emissions.

The IEA’s analysis shows that global primary energy intensity is expected to improve by 1% in 2024, maintaining the same rate as in 2023 and approximately half of the average improvement rate observed between 2010 and 2019. At the COP28 climate conference in Dubai, nearly 200 countries committed to doubling the energy efficiency improvement rate, from 2% in 2022 to 4% by 2030.

The report also notes significant policy advancements, with governments representing over 70% of global energy demand introducing new or updated efficiency policies in 2024. For instance, the European Union revised its regulations aiming for a zero-emission building stock by 2050, while China updated appliance standards and strengthened national efficiency targets. In the United States, fuel economy standards for heavy-duty vehicles were tightened, and Kenya mandated more energy-efficient building codes for new constructions.

Despite these positive developments, the IEA warns that achieving global targets will require faster policy responses and further strengthening of existing initiatives.

Fatih Birol, IEA Executive Director, stressed that energy efficiency is a crucial component of secure, affordable, and inclusive energy transitions. “The policies and technologies to accelerate efficiency progress are readily available today, and many governments are taking important steps forward,” he said. “What we hope to see now is faster and stronger policy responses across the globe.”