Compared with eye-catching renewable power technologies like wind turbines and solar panels, energy efficiency is nearly invisible. But advocates say doing more with less power may be an even more critical weapon in the fight against climate change and offers big economic benefits, too.
Worldwide, governments, companies and families could be saving trillions of dollars by improving efficiency with cars that go farther on less fuel and improved appliances, light bulbs and factories, experts say.
“It’s logical, because we simply waste so much,” said Harry Verhaar, head of global and public affairs at Philips Lighting and chairman of the European Alliance to Save Energy. “Some people call energy efficiency low-hanging fruit. I would even say energy efficiency is fruit lying on the ground. We only need to bend over and pick it up.”
An environmental activist dressed as a lobbyist, his hands covered in coal, protested in Brussels in October. Europe has agreed to cut greenhouse gas emissions by 40 percent from 1990 levels by 2030.Special Report: Business of Green: Testing the Limits of European Ambitions on EmissionsNOV. 30, 2014
To realize an ambitious plan to switch over to renewable energy, Germany would have to greatly increase the use of photovoltaic panels like these. The country would also have to make major changes to vehicles, home design and power plants.Business of Green: Plan Outlines Low-Carbon Future for GermanyNOV. 30, 2014
Li Hejun, founder of Hanergy Holding, says he believes that China will be No. 1. in solar energy in the next decade.Business of Green: Li Hejun, Chairman of Hanergy Holding Group, on the Energy SourceNOV. 30, 2014
Realizing those energy savings would be a huge boon to the climate, ease illness-causing air pollution, reduce many nations’ reliance on fuel imports and increase competitiveness by lowering costs, the advocates say. It creates jobs in fields like upgrading buildings, and is generally cheaper than the alternative of constructing new power plants and buying more energy, they argue.
But increasing efficiency is logistically complicated, requiring many individuals and organizations to take a tremendous number of small steps, and most nations have failed to aggressively pursue the potential savings.
Even Germany, which topped the American Council for an Energy-Efficient Economy’s rankings as the most efficient of the world’s 16 biggest economies, scored only 65 of a possible 100 points, noted Rachel Young, the lead author. Denmark and Switzerland, too small to be included in the survey, are doing more, she said.
“Energy efficiency is everywhere and nowhere at the same time,” said Jonathan Sinton, senior energy specialist at the World Bank. “Power generation happens in a place, in a piece of equipment that you can see and touch. But energy efficiency happens everyplace energy is, and that pervasiveness makes it really, really hard to deal with.”
Some also argue that making energy cheaper by reducing demand just leads consumers to use more, a phenomenon called the rebound effect. Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, said the effect was real but relatively modest, with about 20 percent of saved energy in developed countries being used as a result.
The countries that have made the most progress on efficiency are those whose governments have prioritized it, Mr. Nadel said. Many are in Europe, where Germany, for example, requires regular efficiency audits of manufacturers and has stringent building codes, Ms. Young said.
Environmentalists, though, are disappointed with an October agreement by European Union leaders to set a non-binding target of increasing the bloc’s energy efficiency by at least 27 percent by 2030, as part of a broader climate deal.
Monica Frassoni, president of the European alliance, said that would hardly exceed the rate of efficiency improvements already happening, and stronger government action was needed. “These things do not fall from the sky,” she said. “You need political leadership and you need money.”
Worldwide, governments, companies and families could be saving trillions of dollars by improving efficiency with cars that go farther on less fuel and improved appliances, light bulbs and factories, experts say.
“It’s logical, because we simply waste so much,” said Harry Verhaar, head of global and public affairs at Philips Lighting and chairman of the European Alliance to Save Energy. “Some people call energy efficiency low-hanging fruit. I would even say energy efficiency is fruit lying on the ground. We only need to bend over and pick it up.”
An environmental activist dressed as a lobbyist, his hands covered in coal, protested in Brussels in October. Europe has agreed to cut greenhouse gas emissions by 40 percent from 1990 levels by 2030.Special Report: Business of Green: Testing the Limits of European Ambitions on EmissionsNOV. 30, 2014
To realize an ambitious plan to switch over to renewable energy, Germany would have to greatly increase the use of photovoltaic panels like these. The country would also have to make major changes to vehicles, home design and power plants.Business of Green: Plan Outlines Low-Carbon Future for GermanyNOV. 30, 2014
Li Hejun, founder of Hanergy Holding, says he believes that China will be No. 1. in solar energy in the next decade.Business of Green: Li Hejun, Chairman of Hanergy Holding Group, on the Energy SourceNOV. 30, 2014
Realizing those energy savings would be a huge boon to the climate, ease illness-causing air pollution, reduce many nations’ reliance on fuel imports and increase competitiveness by lowering costs, the advocates say. It creates jobs in fields like upgrading buildings, and is generally cheaper than the alternative of constructing new power plants and buying more energy, they argue.
But increasing efficiency is logistically complicated, requiring many individuals and organizations to take a tremendous number of small steps, and most nations have failed to aggressively pursue the potential savings.
Even Germany, which topped the American Council for an Energy-Efficient Economy’s rankings as the most efficient of the world’s 16 biggest economies, scored only 65 of a possible 100 points, noted Rachel Young, the lead author. Denmark and Switzerland, too small to be included in the survey, are doing more, she said.
“Energy efficiency is everywhere and nowhere at the same time,” said Jonathan Sinton, senior energy specialist at the World Bank. “Power generation happens in a place, in a piece of equipment that you can see and touch. But energy efficiency happens everyplace energy is, and that pervasiveness makes it really, really hard to deal with.”
Some also argue that making energy cheaper by reducing demand just leads consumers to use more, a phenomenon called the rebound effect. Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, said the effect was real but relatively modest, with about 20 percent of saved energy in developed countries being used as a result.
The countries that have made the most progress on efficiency are those whose governments have prioritized it, Mr. Nadel said. Many are in Europe, where Germany, for example, requires regular efficiency audits of manufacturers and has stringent building codes, Ms. Young said.
Environmentalists, though, are disappointed with an October agreement by European Union leaders to set a non-binding target of increasing the bloc’s energy efficiency by at least 27 percent by 2030, as part of a broader climate deal.
Monica Frassoni, president of the European alliance, said that would hardly exceed the rate of efficiency improvements already happening, and stronger government action was needed. “These things do not fall from the sky,” she said. “You need political leadership and you need money.”