Introduction
The first Global Stocktake of the Paris Agreement at COP28 in Dubai in December 2023
concluded that the world is currently not on track to meet its goal of limiting global warming
to 1.5 °Celsius (C).
1 To get back on track, nearly 200 governments at COP28 set out a series
of ambitious global goals, in particular for the energy sector. Flowing from the overarching
goal of net zero emissions from the energy sector by 2050, the collective goals set out for
the global energy sector in paragraph 28 of the COP28 outcome provide robust, high-level
priorities for the clean energy transition (IEA, 2024a). Countries are called upon to contribute
to implementing these goals with supportive national policies and to integrate them into the
next round of Nationally Determined Contributions (NDCs), which will be crucial to
determine the pace at which greenhouse gas (GHG) emissions decline over the next decade.

Energy goals adopted at COP28

The extent to which the COP28 outcome is a success depends ultimately on actions to meet
its goals. These aimsrequire a holistic package of complementary actions and alignment with
a 1.5 °C pathway to realise all of them comprehensively. If achieved in full, the COP28 energy
goals would have profound impacts on the energy sector. The level of ambition in the next
round of NDCs should be consistent with the decisions taken at COP28, and those NDCs will
show whether or not the goals agreed at COP28 are likely to be achieved.

Policies to deliver technical efficiency
Technical efficiency refers to improvementsin the efficiency of energy consuming equipment
such as appliances, building envelopes, factories, cars and trucks. To double the rate of
energy efficiency gains by 2030, improvements in technical efficiency need to accompany
progress on electrification and fuel switching. Making improvements requires an integrated
policy approach that combines regulation, information and incentives.
Buildings account for around 30% of final consumption worldwide and more than half of
electricity consumption. Building energy codes are an effective policy tool to regulate
minimum energy performance. The adoption of building energy codes is increasing
worldwide, but more than 100 countries had no mandatory codes in 2023. It is particularly
important to improve the energy performance of existing buildings between now and 2030
if the world is to get on track for net zero emissions by 2050, but only around 50 building
energy codes today contain provisions for the standing building stock.

IEA policy packages toolkit for energy efficiency

Governments can also improve the energy performance of buildings by promoting energy
retrofits with incentives such as grants and loans, and with support for innovative
approaches such as using prefabricated construction elements to retrofit in bulk. They can
further improve future energy performance by promoting grid-interactive buildings. These
can play a vital role in system flexibility, helping to reduce costs for consumers and to
integrate variable renewables into electricity systems. Technologies such as smart meters
and building energy management systems enable consumers to monitor and reduce their
energy use. They also facilitate demand-response measures, for example by enabling the
flexible operation of EV chargers, water heaters and other appliances, and can be specifically
designed to overcome barriers and maximise benefits for low-income consumers. Such
measures have the potential to reduce household electricity bills by 7-12% by 2050 in
advanced economies, and by almost 20% in emerging market and developing economies.
Appliances represent 46% of electricity demand in buildings. To double the rate of energy
efficiency improvements, appliances need to be between 30% and 40% more efficient by 2030 Minimum energy performance standards specify efficiency requirements for
appliances and help to eliminate the worst performing equipment from the market. More
efficient appliances often do not cost more than their less efficient counterparts, and in many
cases, they offer significant energy and cost savings over their lifetime. Minimum energy
performance standards could be accompanied by incentives to lower the upfront cost of
more energy-efficient appliances, where there is a case for this, and by market replacement
programmes to accelerate the uptake of more efficient appliances and prevent a potential
lock-in effect.

Source:https://www.iea.org/reports/from-taking-stock-to-taking-action