Global energy efficiency requires massive investment to meet 2030 targets

A joint report by the International Renewable Energy Agency (IRENA), the COP31 Presidency, and the Global Renewable Energy Alliance reveals that global energy efficiency is currently falling short of 2030 targets. While energy intensity improvement reached 1.7% in 2025, the annual average must rise to 5.6% between 2026 and 2030 to meet the 4% annual target set for 2030.

To bridge this gap, annual global investments in energy efficiency and savings must increase significantly from $369 billion in 2025 to an average of $3.2 trillion per year during the 2026-2030 period. Key sectors requiring accelerated investment include buildings, transport, and industry. High financing and capital costs in developing nations remain major obstacles, with over 75% of their Nationally Determined Contributions requiring international financial support.

The report emphasizes that electrification is critical for efficiency. Technologies such as electric vehicles and heat pumps are significantly more efficient than fossil fuel alternatives. To meet targets, the share of electricity in final energy consumption must rise from 23% in 2023 to 30% by 2030, with a further goal of 35% by 2035.