Energy Efficiency: The Key to Achieving Sustainable Development Goals

Insights from Andrei Covatariu at the World Utilities Congress 2025

In an exclusive interview at the Energy Connects Studio during the World Utilities Congress 2025, Andrei Covatariu, Co-chair of the Digitalization in Energy Task Force at the United Nations Economic Commission for Europe, emphasized the critical role of energy efficiency in climate policy. Contrary to popular focus on new renewable energy sources, Covatariu identified energy efficiency as the true game-changer for sustainable development.

Energy Efficiency and Its Impact on Climate and Sustainable Development

Energy efficiency offers significant benefits aligned with multiple Sustainable Development Goals (SDGs), including:

1. SDG 7: Affordable and Clean Energy – By optimizing energy use in buildings and industrial processes, efficiency reduces energy demand and enhances access to clean energy.
2. SDG 13: Climate Action – Improved efficiency directly lowers carbon emissions, contributing to global efforts to combat climate change.
3. SDG 9: Industry, Innovation, and Infrastructure – Smarter buildings and optimized industrial processes foster innovation and sustainable infrastructure development.
4. SDG 12: Responsible Consumption and Production – Energy efficiency promotes sustainable consumption patterns by minimizing waste and resource use.

Challenges and Opportunities in Energy Efficiency

• Untapped Potential: Dozens of efficiency opportunities remain underutilized, including smarter building technologies and optimized industrial operations.
• Governance Frameworks: Bold policy measures are required to prioritize energy efficiency in national and international agendas.
• Financial Mechanisms: Tailored financing solutions must be developed to support efficiency projects and attract investment.
• Investor Mindset: A paradigm shift is necessary among investors to recognize and value energy efficiency as a low-carbon champion.

Conclusion

Energy efficiency stands as a pivotal strategy to accelerate progress towards the Sustainable Development Goals. By unlocking its full potential through effective governance, innovative financing, and investor engagement, the global community can achieve significant reductions in carbon emissions, lower energy costs, and enhance sustainable development outcomes.

1. Sustainable Development Goals (SDGs) Addressed

1. SDG 7: Affordable and Clean Energy
   • The article focuses on energy efficiency as a key factor in reducing emissions and optimizing energy use, which directly relates to ensuring access to affordable, reliable, sustainable, and modern energy.
2. SDG 13: Climate Action
   • Reducing global carbon output through energy efficiency contributes to combating climate change and its impacts.
3. SDG 9: Industry, Innovation and Infrastructure
   • The mention of optimized industrial processes and smarter buildings relates to fostering innovation and sustainable industrialization.

2. Specific Targets Identified Under Those SDGs

1. SDG 7 Targets
   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
2. SDG 13 Targets
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
3. SDG 9 Targets
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.

3. Indicators Mentioned or Implied to Measure Progress

1. Energy Efficiency Improvement Rate
   • Implied by the discussion on “dozens of untapped efficiency opportunities” and the need to “slash global carbon output,” this relates to measuring the rate of improvement in energy efficiency (Indicator 7.3.1: Energy intensity measured in terms of primary energy and GDP).
2. Carbon Emissions Reduction
   • Reduction in global carbon output is a key implied indicator, connected to tracking greenhouse gas emissions (Indicator 13.2.2: Total greenhouse gas emissions per year).
3. Adoption of Sustainable Industrial Processes
   • Implied by references to optimized industrial processes and smarter buildings, which can be linked to indicators measuring resource-use efficiency and adoption of clean technologies (Indicator 9.4.1: CO2 emission per unit of value added).
4. Governance and Finance Mechanisms
   • Though not explicitly quantified, the article highlights the need for “bold governance frameworks” and “finance mechanisms tailored to efficiency,” implying indicators related to policy implementation and investment flows in energy efficiency.

4. Table of SDGs, Targets, and Indicators

Source: energyconnects.com