Background

Energy efficiency is at the core of our sustainable future, and yet the rate of improvement in energy intensity has declined for three years in a row, leaving it off the pace needed to achieve SDG7. Demand side efficiency improvements represent 40% of the total emissions abatement opportunity to deliver the Paris goals beyond existing policy plans, while offering economic and social benefits.

In the wake of the Covid-19 pandemic, disruptions impact global energy use and incomes (GDP), which are the basis for tracking energy efficiency progress using a metric of energy intensity (units of energy per unit of GDP). Worldwide, there has been reported declines in energy demand, and many countries have suffered negative growth in GDP. To respond to this unique situation governments around the world are set to spend trillions of dollars on recovery packages, investing in jobs, the economy and recovering better. This provides opportunities to support energy efficiency, which could create, according to the IEA’s Sustainable Recovery Plan, as much as 35% of new jobs.

Increases in energy efficiency would help Asia and the Pacific drive economic growth and meet energy access goals while decreasing emissions. Energy efficiency enhancements would:

• Keep countries on a low carbon track as they develop and as they recover after the COVID-19 pandemic
• Reduce demand for fossil fuel and related greenhouse gas emissions
• Reduce the energy access gap

Many countries in Asia and Pacific have set national energy efficiency targets. For example ASEAN has established collective targets of a 20% decrease in energy intensity by 2020 and a 30% decrease in energy intensity by 2025, relative to the base year of 2005. Better policy and financial tools are needed to properly enhance the market supporting energy-efficient technologies and services in order to achieve national goals. Scaling up collaboration, strengthening institutions’ capacity and aligning grants, loans and incentives from climate funds and financial institutions can unlock private investment to enable market transformation with energy efficiency.

• Elevate Energy Efficiency: Advocate for energy efficiency in global agendas, creating a clear narrative to advocate for energy efficiency, convening partners and matching solution offers.
• Support Energy Efficiency: Deliver strategic support and technical assistance in countries on key issues for high impact sectors.
• Invest in Energy Efficiency: Deliver project implementation through loans, grants and incentives for infrastructure and projects.

Three Percent Club partners include the Energy Efficiency Accelerators and Hub, which represent the largest network of energy efficiency organizations currently serving more than 70 countries around the world. The Accelerators are public-private partnerships led by core partners including UN Environment, World Resources Institute, UNIDO and the FIA Foundation, along with industry co-conveners the International Copper Association, Signify, Johnson Controls, Danfoss and the Carbon Trust. The Accelerator partnerships currently include private-sector organizations representing more than 100 international and regional energy efficiency businesses.

These strategic public-private partnerships are set to leverage synergies between sectors and foster collaboration across multiple levels of government (national/local), organizations, financial institutions and the private sector. The Accelerators have learned that in order to achieve effective and lasting market transformation, strategic approaches maintained over many years are required. The Three Percent Club is set to expand the delivery of this market transformation through an increased closely coordinated diffusion (deployment and contracting) of energy efficiency solutions with partners globally.