G7_JAPAN

Energy security
The G7 remains engaged on the
important topic of energy efficiency
Thermal imaging is used to
research ways of reducing
energy wastage
The IEA is
positioning
itself to lead in
global analysis
of energy
efficiency policy
DARIO SABLJAK/ALAMY STOCK PHOTO
energy sector, including macroeconomic
development, industrial productivity,
and health and the environment. Since
1990, energy efficiency investments in
IEA countries have saved a cumulative
10.2 gigatonnes of carbon emissions from
fossil fuel combustion. This is an important
number to remember as governments
work to implement the Paris Agreement:
of the options in the IEA Bridge Scenario
to achieve a peak in global emissions
around 2020, almost half of all energy
savings come from efficiency.
Untapped economic potential
Despite the key strategic role of energy
efficiency, the vast majority of economically
viable investments will not be made
under existing policies. Relative to the
opportunities, inadequate attention is paid
to energy efficiency investments both by
public and private stakeholders. Unless
policy activity increases, two thirds of the
economic potential to improve energy
efficiency remains untapped in the period
up to 2035. This is unfortunate: from
a market perspective, energy efficiency
services are a commodity – for all types
of energy consumers and producers –
equal to any other energy resource.
Thankfully, governments today are
seeking advice. The next step will require
leadership and investment, necessary for
energy efficiency to realise its potential
and help the world meet its collective
climate goals.
The IEA is a central voice in this
discussion, increasingly focusing on energy
efficiency and the ways it intersects with the
rest of the energy mix. Since 2013 the IEA’s
World Energy Outlook has featured a chapter
on energy efficiency on an equal footing
with other fuels. In 2013, the IEA added
energy efficiency to its suite of fuel market
reports, alongside traditional fuels such as
coal and oil. And in 2016 the IEA created a
dedicated energy efficiency division.
This growing expertise is being
acknowledged. As one outcome of the G7
Hamburg Initiative for Sustainable Energy
Security in 2015, the IEA, in collaboration
with the International Partnership for
Energy Efficiency Cooperation, is working
on a comprehensive analysis of key energy
efficiency measures, focusing on market
mechanisms. We look forward to sharing
this work with the G7 in 2017.
The IEA already works closely with the
United Nations Environment Programme,
Sustainable Energy for All, the World Bank
and several other international agencies.
It also engages with the G20, supporting its
broadening discussion on the importance of
energy efficiency. The IEA Energy Efficiency
in Emerging Economies programme has
already built strong collaborations with the
largest emerging economies, working on
analysis, measurement, and policy design
and implementation.
Analysis, guidance and monitoring
Conscious of the central role of business in
energy efficiency, the IEA has established
an industry advisory board involving the
CEOs of major private sector organisations
interested in energy efficiency. This
includes technology companies, energy
service companies and utilities.
Rooted in these strong networks and
broad expertise, and supported by its
rich data and modelling capabilities, the
IEA is positioning itself to lead in global
analysis of energy efficiency policy. It can
offer guidance on designing and delivering
energy efficiency policies and programmes,
from initial analysis of the opportunity to
ongoing monitoring and evaluation.
I am pleased that under the Japanese
presidency the G7 remains engaged on this
critically important topic, and look forward
to continuing our work to provide the
highest quality data, analysis and advice to
help countries deliver on the tremendous
potential of energy efficiency. G7
Fatih Birol
Executive Director
International
Energy Agency
Birol became Executive Director
on 1 September 2015. Previously
he was the IEA’s Chief Economist
and Director of Global Energy
Economics, with responsibilities
that included directing the
IEA’s flagship World Energy
Outlook, recognised as the most
authoritative source of strategic
analysis on global energy markets.
He is also the founder and chair of
the IEA Energy Business Council,
which provides a forum to enhance
cooperation between the energy
industry and energy policymakers.
@IEABirol
www.iea.org
g7g20.com May 2016 • G7 Japan: The Ise-Shima Summit 59