Energy Efficiency From Niche to Established Market Segment, Says IEA

Energy efficiency is set to increase in the coming years on new investments, innovative products and standards conveying confidence in the market. 

“Energy efficiency is the invisible powerhouse in IEA countries and beyond, working behind the scenes to improve our energy security, lower our energy bills and move us closer to reaching our climate goals,” IEA Executive Director Maria van der Hoeven said at the Verona Efficiency Summit as reported in a note released on Wednesday. 

On the same occasion, the IEA Executive Director launched the IEA’s Energy Efficiency Market Report 2014. 

The reports suggests that the global energy efficiency market is worth at least USD 310 billion a year. It also documents a 5% decrease in total energy consumption in the period 2001-2011 for the 18 IEA countries, ‘primarily as a result of investments in energy efficiency.’ 

‘According to the IEA, some 40% of the global energy efficiency market is financed with debt and equity, meaning that the financial market for energy efficiency is in the range of USD 120 billion per year. The number of products and the volume of finance have greatly expanded in recent years, with green bonds, corporate green bonds, energy performance contracts, private commitments, carbon and climate finance, and multilateral development banks and bilateral banks all offering expanded sources of finance for energy efficiency improvements. Bilateral and multilateral lending alone amounted to more than USD 22 billion in 2012.’