The first fuel
Energy efficiency improvements have delivered big savings – and provide big opportunities Today the world is facing an energy crisis within a broader climate emergency. The crisis comes on the heels of the Covid-19 pandemic, already volatile energy prices and weather related challenges in many countries. Much of the focus lies on how to secure supply, with policymakers focussed on how to “keep the lights on.” Yet if we stick to lighting for a moment, it is equally relevant to consider whether we might meet the same goal by installing more efficient light bulbs. The same balancing act occurs throughout the energy system, across buildings, transport, and industry. In each sector the demand side determines how much energy is needed, and equally, can be managed to be more efficient and flexible. Decades of experience show that energy efficiency and other demand management measures such as load shifting and conservation can deliver both short- and long- term benefits to the energy system and to consumers. These measures slim down demand, lower costs, cut emissions, avoid more expensive supply side investments and can be shaped to complement variable renewable generation. They save households, businesses and governments money and improve competitiveness. And they improve access to energy services and generate jobs – many of them local. This is true of emergency measures as well as of sustained improvements over time.

Longer-term energy security Energy security can be defined in different ways, including by import/export balances, diversity of energy sources, resilience of energy systems to disruption, and reduction of exposure to risks – such as price volatility on global markets. Energy efficiency can contribute to each of these dimensions. Mexico, for example, has calculated the contribution of energy efficiency programmes to energy independence, defined as the level of consumption to production in-country. While energy independence has decreased over time, energy efficiency has tempred this trend. From 2000-2015, energy efficiency improved the level of energy independence by 9% relative to a scenario without energy savings.

Index of energy independence with and without energy efficiency (in petajoules) in Mexico, 2000-2015

Another recent survey of green building practices in Colombia found that most companies surveyed generated new jobs when incorporating sustainable practices, with the highest job creation in the manufacturing and supply of efficient materials and in financing. In Mexico, the household refrigerator replacement programme mentioned earlier is estimated to have created around 9 000 direct and 3 000 indirect jobs. Organisations including the IEA and International Labour Organization (ILO), academic researchers, and initiatives at national level such as in Brazil, have developed jobs multipliers based on available evidence to help determine the jobs creation potential of investment in energy efficiency. In its 2020 Sustainable Recovery report, the IEA estimated that globally, every million USD invested in energy efficiency generates significant jobs in key sectors including building construction, renovation, appliances and transportation. In the buildings sector, every million dollars invested in energy efficiency generates an estimated 10 to 31 jobs in manufacturing and construction for retrofitting existing buildings and implementing energy efficiency measures in new construction. Most construction jobs are local. Manufacturing focuses on key materials, such as insulation, window glazing and heat pumps. For appliances, every million dollars invested would generate an estimated 7 to 16 jobs, mainly in supply chains and sales.

Average jobs created globally per million dollars invested, buildings and appliances

In the transport sector, many of the energy efficiency jobs are in the manufacture of electric vehicles, batteries and charging infrastructure. Expanding rail travel can create additional jobs and provides significant efficiency improvements compared to other modes of transport. Investments in urban infrastructure to shift to walking and cycling are estimated to create between eight and 22 jobs per million dollars invested, making them a jobs engine in city centres.

Average jobs created globally per million dollars invested, transport infrastructure

Global venture capital investments in clean energy start-ups in the fields of efficiency and electrification, by technology, 2015 – H1 2022

There are many examples of training initiatives across the region to meet the growing demand for energy efficiency services. In Colombia the number of professionals accredited in a green building standard has increased significantly over the past few years, with EDGE, LEAD and CASA certifications leading the pack. The government and Colombian Chamber of Construction (CAMACOL) have worked together to strengthen university curricula to train students in sustainable building practices. The Energy Efficiency in the Colombian Industry project (Proyecto de Eficiencia Energética Industrial en Colombia), implemented from 2016 to 2019, aimed to boost the market for energy efficiency services and products. This project monitored 180 industries and trained more than 100 industry technicians, including 22 women, in seven regions of the country, bringing social and employment benefits to communities.

A package of policies and implementation are needed to deliver energy efficiency

Policies and programmes mentioned in this report (by country) The following is a summary of examples referenced throughout the paper. It is not a comprehensive summary of policies or programmes, but rather a tool to navigate the policies, programmes and other sources of information cited in this paper. Sources are listed by country, and then in the order that they appear throughout this report, alongside the lead agency or actor responsible for the material, and key sectors covered. For a more complete overview of the policy framework for energy efficiency in the region, please see the IEA’s Policies and Measures Database and publication by OLADE summarising energy efficiency laws in the region.

Source:http://IEA