
Global industry drives 80% of energy demand rise since 2019, efficiency gains stall: IEA
New Delhi:
Industrial energy demand
has driven 80 per cent of global growth in energy use since 2019, even as efficiency gains have stalled, according to the
International Energy Agency
(IEA). The issue took centre stage at the IEA's 10th Annual Global Conference on
Energy Efficiency
, which opened in Brussels, with ministers, CEOs, and experts from nearly 100 countries in attendance.
A new IEA report released for the event showed that while global industries produce nearly 20 per cent more value for every unit of energy than two decades ago,
energy intensity improvements
have stagnated in recent years. The industrial sector has failed to achieve meaningful efficiency gains despite being the largest contributor to rising global energy demand since 2019.
'Energy efficiency is about so much more than just energy. It delivers clear benefits for people, lowering their bills, improving businesses' competitiveness and creating jobs. Efficiency is about better lives and healthier economies,' said IEA Executive Director Fatih Birol. 'I'm very pleased to be co-chairing the 10th edition of the IEA's Annual Global Conference on Energy Efficiency with Commissioner Jørgensen here in Brussels, bringing together participants from close to 100 countries from around the world, to drive stronger progress in this vital area.'
The two-day conference, co-hosted by Birol and European Commissioner for Energy and Housing Dan Jørgensen, will explore the use of digital technologies, including artificial intelligence, to enhance operational efficiency and reduce energy use in industry. The IEA said increased efficiency could reduce operating costs and enhance competitiveness for small and medium enterprises amid fluctuating global energy prices.
The conference also addresses energy use in buildings and appliances. Delegates will deliberate on expanding building codes, retrofitting existing infrastructure, and updating product standards for fast-selling appliances such as air conditioners. According to the IEA, five air conditioners are sold globally every second, but most operate at only half the efficiency of the best available models.
The 2025 conference builds on previous editions, including the one held in Nairobi in 2024—marking the first time the event was hosted by an African country. That session saw more than 650 delegates call for accelerated energy efficiency investments in emerging and developing economies.
It also follows the COP28 climate summit in Dubai in 2023, where nearly 200 countries pledged to double the global rate of energy efficiency improvements by 2030. The IEA report indicated that current progress remains significantly below that target.
On the eve of the conference, the Energy Efficiency Movement—a global industry-led initiative—announced that 18 chief executives of international companies had signed a joint commitment to boost industrial efficiency as a way to improve productivity and reduce emissions.
The Brussels conference is being seen as a forum to drive international collaboration and review national policies and progress. Delegates are expected to outline the next steps to harness energy efficiency across sectors, unlock investments, and meet sustainability and cost-reduction goals.
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