Doubling energy efficiency: Bringing the target in sight – E3G

Report on Accelerating Energy Efficiency for the Sustainable Development Goals

Introduction: The Critical Gap in Achieving SDG 7

The advancement of energy efficiency is a foundational requirement for a just energy transition and the successful achievement of multiple Sustainable Development Goals (SDGs). It is central to realizing SDG 7 (Affordable and Clean Energy), particularly target 7.3, which calls for doubling the global rate of improvement in energy efficiency. Furthermore, it is indispensable for SDG 13 (Climate Action), as it directly determines whether clean energy deployment effectively displaces fossil fuel consumption or is negated by rising energy demand. A failure to accelerate energy efficiency leads to increased fossil fuel dependency, higher costs, and greater energy insecurity, undermining global sustainability efforts.

The UAE Consensus at COP28 established a global goal to double the average annual rate of energy efficiency improvements to 4% by 2030. However, current progress is critically insufficient. The actual rate of improvement was only 1% in 2023 and is projected to remain at that level in 2024. This significant shortfall jeopardizes the 2030 Agenda for Sustainable Development and necessitates immediate, targeted global action.

Priority Action Areas to Align with the 2030 Agenda

To bridge the gap and meet the global energy efficiency target, this report identifies five priority areas for intervention. These actions, if implemented, could deliver approximately one-third of the required energy savings and would significantly contribute to several interconnected SDGs.

1. Industrial Motor Efficiency: Harmonizing, adopting, and doubling the efficiency standards for industrial motors by 2030. This directly supports SDG 9 (Industry, Innovation, and Infrastructure) by promoting clean and environmentally sound industrial processes and contributes to SDG 12 (Responsible Consumption and Production).
2. Appliance Efficiency Standards: Harmonizing, adopting, and doubling the average efficiency standards for common appliances by 2030. This action is crucial for advancing SDG 7 and SDG 12 by reducing household and commercial energy consumption.
3. Building Renovation Rate: Doubling the rate of building renovation through enhanced skills development and the establishment of one-stop shops for implementation. This initiative is vital for SDG 11 (Sustainable Cities and Communities) and promotes SDG 8 (Decent Work and Economic Growth) by creating green jobs.
4. New Building Energy Codes: Closing gaps in the coverage and enforcement of mandatory energy codes for all new constructions. This measure is fundamental to building sustainable infrastructure in line with SDG 9 and SDG 11.
5. Transport Efficiency: Systematically increasing fuel economy standards for conventional vehicles and efficiency standards for electric vehicles. This is a key strategy for mitigating transport sector emissions, directly contributing to SDG 11 and SDG 13.

A Strategic Framework for Global Implementation

A twin-track approach is proposed to operationalize these priorities, focusing on high-level political leadership and targeted financial mobilization, both of which are central to SDG 17 (Partnerships for the Goals).

Formation of a Global Leadership Coalition

A coalition of global leaders in energy efficiency is required to champion these priority areas. Nations and regions with proven success in specific sectors—including ASEAN, Kenya, Japan, India, Brazil, China, and various US cities—are positioned to lead this effort.

• The UAE’s Global Energy Efficiency Alliance (GEEA) can serve as a unifying platform to consolidate these leadership efforts.
• Collaboration with initiatives such as Brazil’s Global Coalition for Energy Planning is essential to ensure that energy efficiency is fully integrated into the planning and financing of the broader energy transition, reinforcing progress on SDG 7.

Mobilizing Multilateral Finance for Technical Assistance

Multilateral Development Banks (MDBs) must play a pivotal role by scaling up financial and technical support for energy efficiency projects.

• MDBs should make specific, quantified pledges to increase the share of climate finance dedicated to energy efficiency, aligning their portfolios with the goals of SDG 7 and SDG 13.
• The focus of this finance must be on quality and strategic impact. This includes providing targeted technical assistance for the five priority areas and developing financial mechanisms to overcome the structural challenges associated with funding smaller-scale efficiency projects.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on energy efficiency connects to several Sustainable Development Goals (SDGs) due to its focus on energy, climate, industry, and global cooperation. The primary SDGs addressed are:

• SDG 7: Affordable and Clean Energy: This is the most central SDG, as the article’s main topic is energy efficiency, a key component of sustainable energy systems.
• SDG 13: Climate Action: The article explicitly links energy efficiency to climate outcomes, stating that when efficiency stalls, “emissions… rise,” positioning it as a critical tool for climate change mitigation.
• SDG 9: Industry, Innovation and Infrastructure: The article discusses upgrading industrial equipment (motors), improving buildings (renovation and energy codes), and setting new standards for appliances and vehicles, all of which relate to making infrastructure and industries more sustainable and efficient.
• SDG 17: Partnerships for the Goals: The text emphasizes the need for international collaboration, citing the “UAE consensus,” the “Global Energy Efficiency Alliance (GEEA),” and the role of “Multilateral development banks (MDBs)” in providing finance and technical assistance.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the specific actions and goals mentioned in the article, the following SDG targets can be identified:

1. Target 7.3: “By 2030, double the global rate of improvement in energy efficiency.” This target is directly and explicitly mentioned in the article: “The UAE consensus, agreed at COP28 in Dubai, included a goal to double the average annual rate of energy efficiency improvements by 2030.” The article further specifies the desired rate is 4% annually.
2. Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.” This target is reflected in the article’s five priority areas, which include “doubling of industrial motor efficiency standards,” “doubling of average appliance efficiency standards,” doubling the “rate of building renovation,” and enforcing “mandatory energy codes for new buildings.”
3. Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The article’s call for harmonizing and adopting efficiency standards for motors, appliances, buildings, and vehicles is a direct example of integrating climate measures (via energy efficiency) into industrial and national policies to cut fossil fuel use and emissions.
4. Target 17.7: “Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms.” The call for Multilateral Development Banks (MDBs) to “scale technical assistance for energy efficiency” and for a “leadership coalition” involving countries like Kenya, India, and Brazil to step up globally aligns with promoting and diffusing efficient technologies and policies.
5. Target 17.3: “Mobilize additional financial resources for developing countries from multiple sources.” The article highlights the need for MDBs to increase the “share of climate finance going to efficiency projects” and to reorient the “quality and nature of climate finance” to support these goals, directly addressing the mobilization of financial resources.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions and implies several indicators that can be used to track progress:

• For Target 7.3: The primary indicator is explicitly stated: the “average annual rate of energy efficiency improvements.” The article provides concrete figures, noting the target is a 4% improvement rate, while the “actual rate of improvement in 2023, and estimated in 2024, was just 1%.” This directly corresponds to Indicator 7.3.1 (Energy intensity).
• For Target 9.4: The article implies several indicators through its priority areas:
  • The rate of adoption and enforcement of industrial motor and appliance efficiency standards.
  • The annual rate of building renovation.
  • The percentage of new buildings covered by mandatory energy codes and the rate of enforcement.
  • The average fuel economy of new vehicles and the efficiency standards for electric vehicles.
• For Target 17.3 & 17.7: Progress can be measured by indicators implied in the call to action for MDBs:
  • The total amount and share of climate finance from MDBs allocated to energy efficiency projects.
  • The volume and scope of technical assistance programs for energy efficiency funded by MDBs and other international bodies.

4. Summary Table of SDGs, Targets, and Indicators

Source: e3g.org