How COP29 Could Help Advance Energy Efficiency

The necessity for enhanced energy efficiency has become a defining goal in today’s rapidly evolving energy landscape. As industries grapple with fluctuating energy prices and increasing regulatory pressures, energy efficiency emerges not just as a cost-saving measure, but as a strategic imperative for resilience and innovation.

There are powerful forces shaping this imperative across various industries and regions globally. From international policy initiatives to local innovations, the push for energy efficiency is more than a trend—it is a vital component of sustainable development.

Also Read| Story in Numbers: Price of Saving the World at COP29

Role of Global Forces

Recent developments at the International Energy Agency (IEA) emphasise a transformative commitment to energy efficiency. Their advocacy for doubling energy efficiency from 2 per cent to 4 per cent by 2030—a crucial goal also spotlighted during COP28 in Dubai—highlights the urgent need for a concerted global effort. This ambitious target signifies a shift in focus towards enhancing efficiency as a critical strategy in mitigating climate change.

The disruption of energy supplies in various regions, including Europe and the US, has underscored the importance of energy security. Businesses are now realising that improved energy efficiency can lead to greater energy

independence, reducing reliance on external sources. Furthermore, supportive policy frameworks are increasingly vital in driving efficiency measures, particularly in industries like cement, metals, and mining. These sectors recognise the significant environmental impact of their operations and understand the urgent need to adopt sustainable practices as part of their responsibility to mitigate challenges.

Learning from Emerging Markets

India is a compelling example of proactive engagement in energy efficiency. My recent experiences at events across the country revealed a palpable eagerness to adopt energy-efficiency solutions. Many Indian organisations, both large and small, are keen to implement practical measures that can lead to immediate or short-term benefits, often independent of formal policies.

A particularly promising new concept is the integration of district heating and cooling systems, which repurpose waste heat from industries like data centres and cement plants. This approach not only reduces energy waste but also transforms potential waste into valuable resources.

India may not need district heating, but the principles of energy recovery and efficient resource use are universally applicable. It is also encouraging to note that many Indian organisations are embracing new technologies. For instance, ABB’s Cooling Tower Direct Drive solution, implemented at the JW Marriott hotel in Pune, has resulted in a remarkable 35 per cent reduction in annual energy consumption. The energy saved in just one day could power an electric vehicle for approximately 1500 kilometres, highlighting the tangible impact of strategic energy solutions.

While it’s always inspiring to hear stories of change, I hope to see more eagerness for learning new skills in the future. In a recent survey conducted by the Energy Efficiency Movement, a sizable portion of the Indian workforce (60 per cent) showed acceptance to leveraging new technologies that could further enhance the energy efficiency goals of their organisations. This presents an opportunity for growth—by fostering a culture of continuous learning and openness to new technology and innovations, more organisations can enhance their energy efficiency strategies.

Industries Leading the Charge

Certain sectors are stepping up in their pursuit of energy efficiency. Heavy industries such as cement, metals, mining, and chemicals have been proactive in adopting measures that reduce both operational costs and carbon footprints. These industries understand that sustainable practices are not merely regulatory requirements; they are essential to long-term viability and competitiveness.

Moreover, there has been significant participation from cross-industry players, such as manufacturing industries and data centres, who are making notable strides in prioritising energy efficiency. The commitment from power-producing industries to implement sustainable practices reflects a growing recognition of the economic and environmental benefits associated with energy-efficient operations, creating a compelling example for other sectors. In data centres, real-time monitoring and control of energy usage to enhance system efficiency and reduce downtime is critical, and other industries can adopt these effective practices.

Insights from India

During my interactions with industry leaders at the Alliance for an Energy Efficient Economy (AEEE) and the CII Energy Efficiency Summit, including the ABB-led Energy Efficiency Symposium, I was inspired by the sense of purpose exhibited by participants. Many organisations proudly shared their journeys toward achieving net zero goals, illustrating the power of collaboration and shared knowledge.

One enlightening discussion at the Energy Efficiency Symposium focused on the interplay between funding and innovation. The consensus among the panellists was clear: allocating budgets for energy efficiency at the outset is crucial. This proactive approach allows organisations to embed energy efficiency into their strategic planning, ensuring it remains a core priority.

Moving Forward

The urgency for energy efficiency is not just a challenge or trend; it is an opportunity to reshape our energy landscape. As we advance, it is crucial for industries and nations to leverage existing technologies and foster a holistic approach to energy efficiency. Often, we find ourselves waiting for the next big innovation, but the truth is that the technology we need to enhance energy efficiency is already available today. It is important to encourage organisations to make the most of the tools and solutions at their disposal now; they will pay off in meaningful ways.

At the COP29 in Baku, Azerbaijan, the theme of energy efficiency will continue to be a central topic. The COP29 agenda includes building on the commitments made at COP28, with a strong emphasis on implementing energy efficiency targets. This involves not only maintaining the momentum of doubling energy efficiency improvements but also integrating these efforts with broader renewable energy goals, such as tripling global renewable energy capacity by 2030. One can see a continuous and escalating commitment to making energy systems more efficient and sustainable. This ongoing effort underscores the global recognition of energy efficiency as a cornerstone of climate action and sustainable development.

Collaboration, innovation, and a commitment to continuous improvement are key to achieving substantial progress. By working with existing technologies, we can drive significant advancements in energy efficiency together.

We’re excited that India stands at the forefront, with more than 130 Movers dedicated to prioritising energy efficiency. The enthusiasm and commitment observed in the country is incredibly motivating. The journey ahead is promising, and with collaboration and the right strategies, we can build a sustainable, energy-efficient future.

(Mike Umiker is Managing Director of the Energy Efficiency Movement. The views expressed are personal)