In response to the current energy crisis, governments are revisiting energy efficiency targets and policies to reflect increased urgency in a focused effort to lower reliance on high-price fossil fuels, protect consumers from high energy bills and reduce dependency on Russian gas in Europe. Regional developments include the following:
Europe: In March 2023 the European Commission strengthened the EU Energy Efficiency Directive as part of efforts in its ‘Fit for 55’ package to deliver the European Grean Deal and the The REPowerEU strategy. Under the new agreement, energy savings obligations will nearly double, with EU countries required to achieve a reduction of 1.49% per year in final energy consumption on average from 2024 to 2030, up from the current level of 0.8%.
United States: The 2022 IRA includes major investment support for energy efficiency. For example, the High-Efficiency Electric Home Rebate Act provides up to USD 14 000 per household, including for heat pump heating, ventilation and air conditioning systems, hot water heaters, clothes dryers and electric stovetops, as well as insulation, air sealing and upgrading electrical systems.
China: In 2022 China strengthened its industrial energy efficiency policies with new laws to improve the energy intensity of the sector by 13.5% by 2025 compared with 2020 levels. This includes detailed targets for the 17 most energy intensive industries such as steel, aluminium and cement. New targets have also been introduced to upgrade old electric motors and transformers such that 70% and 80% of the stock, respectively, use new efficient models by 2025.
Japan: In 2022 the Ministry of Economy, Trade and Industry put forward a plan for stronger energy efficiency standards for heating and cooling by the second half of this decade including up to 35% efficiency improvement for air conditioners compared to current standards.
Korea: the government is strongly promoting the ‘save 1kWh per day’ campaign in 2023, while co-operating closely with NGOs, business associations and local governments.
India: During its G20 Presidency in 2023, India’s Lifestyle for Environment Initiative (LiFE) gained new prominence as a global movement to nudge individual and community actions to save energy and promote mindful use of the environment. Its Mission LiFE programme aims to enable pro-environment consumer choice and behaviour change, including through 19 energy saving actions. To support LiFE, Indiapassed new efficiency laws in 2022, strengthening building codes and efficiency policies covering appliances, vehicles, industrial facilities and commercial buildings.
