#London #United Kingdom #electric vehicles #Electrification #Energy Productivity

Major Opportunity for Economic Growth

The Energy Transitions Commission (ETC) has unveiled a comprehensive report on energy productivity titled Energy Productivity: Increasing Efficiency in an Expanded, Electrified Energy System. This report unveils a pathway that could potentially double the global Gross Domestic Product (GDP) by the year 2050 while simultaneously reducing final energy demand by an impressive 24%. Such ambitious projections emphasize the urgency to transition our energy systems towards efficiency and sustainability.

Understanding Energy Productivity

Energy productivity is a term that describes the output of economic value generated per unit of energy consumed. With rising global prosperity, the demand for energy services—including mobility, industrial production, heating, and cooling—is forecasted to grow significantly. The ETC has established that boosting energy productivity through technological enhancements can meet this demand with considerably lower energy inputs.

Electrification for Enhanced Efficiency

A cornerstone of this improvement is the electrification of critical sectors such as road transport and heating systems. The movement towards electric vehicles (EVs), which are known to be up to three times more efficient than traditional petrol cars, plays a significant role. With projections indicating that EV sales will exceed 20 million globally by 2025, the shift to electric models is both a pivotal and practical step forward. Furthermore, the expansion of heat pump technology, which is stated to produce three to four times more heating energy per unit consumed than gas boilers, underscores this transformative trend.

In addition, the benefits of electric cooking—being four to five times more efficient than traditional biomass methods—introduce health benefits alongside energy savings. These innovations collectively pave the way for a more efficient and sustainable energy system.

Replacing Inefficient Systems and Appliances

Beyond electrification, the report highlights the necessity of retrofit efforts, whereby old technologies are replaced with modern, energy-efficient appliances. By upgrading air conditioning systems, lightbulbs, and industrial motors, it’s estimated that global energy demand could be reduced by around 10% by 2050. This effort alone could avert the generation of approximately 30,000 Terawatt-hours (TWh) of electricity, accounting for the total global electricity consumption observed in 2024.

Material Efficiency and Recycling

The report also emphasizes the importance of smarter material use and recycling as essential components of the energy productivity strategy. It identifies that energy requirements can drop significantly—by 44% in chemicals and plastics, 33% in cement, and 27% in steel—under effective recycling processes despite increasing demand. For instance, producing aluminium from recycled materials utilizes nearly 90% less energy than manufacturing it from raw sources.

Long-Term Planning and COP28 Commitments

The implications of this report resonate ahead of COP30, where country commitments will be evaluated against pledges made during COP28 to double the global rate of energy efficiency improvements to 4% per annum by 2030. This target is particularly applicable when considering that countries can feasibly execute these improvements without significant negative impacts on their economies.

ETC's report serves as a critical guide that delineates how policy frameworks and supportive measures from governments can facilitate widespread electrification of transport and building sectors. Additionally, the collaboration among diverse stakeholders, including industry and financial institutions, is vital to unlocking the full potential of energy productivity.

Call to Action

Adair Turner, Chair of the Energy Transitions Commission, has fervently urged immediate action from governments to implement supportive policies and incentives to enhance energy productivity. He states, "There is a significant opportunity to expand energy services and deliver prosperity while utilizing less energy overall".

By harnessing the advancements set forth in this report, the potential for energy productivity improvement stands as a beacon of hope for a sustainable and economically prosperous future. As we approach COP30, the urgency for action has never been more critical. Let us embrace these advancements and work towards a greener, more efficient world.