The International Energy Agency forecasts a modest acceleration in energy efficiency improvements in 2025 but warns that current efforts fall short of the ambitious targets set by COP28, highlighting the need for stronger policies and greater sectoral progress.
The International Energy Agency (IEA) forecasts an acceleration in global energy efficiency progress in 2025, with primary energy intensity projected to improve by 1.8%, up from 1% in 2024, according to its latest annual update, ‘Energy Efficiency 2025’. This renewed momentum is pivotal for enhancing energy security, bolstering economic competitiveness, and lowering both energy costs and carbon emissions. However, the current pace remains well below the 4% annual improvement target set by nearly 200 governments at COP28 in Dubai in 2023, where the global community pledged to double the average rate of energy efficiency gains by the end of the decade.
Since 2019, global energy efficiency has averaged only a 1.3% improvement per year, a marked decline from the roughly 2% annual progress seen between 2010 and 2019. Major emerging economies such as India and China are showing stronger improvements relative to their longer-term performance, which is encouraging, but substantial hurdles remain. The IEA report highlights that most of the growth in global final energy demand since 2019 has been concentrated in the industrial sector, which accounts for nearly 40% of total final energy consumption. Despite this sector’s significant energy demand, efficiency gains in industry have slowed notably, contributing heavily to the stagnation in overall progress.
A key challenge noted by the IEA is the lag between technological advancements and the development and implementation of robust energy efficiency policies. While technology continues to advance, policy frameworks have not kept pace, leading to missed energy savings opportunities. The report stresses that stronger and more ambitious policy measures are urgently required to catalyse faster progress. Presently, around half of all countries have implemented minimum energy efficiency standards for new buildings, a critical area given the rapid expansion of global construction activities, but significant policy gaps persist in sectors with high energy consumption and strong savings potential.
To address these challenges, the IEA encourages governments to elevate existing policy goals and close remaining policy gaps. The agency’s expanded Energy Efficiency Progress Tracker now offers enhanced regional insights aligned with the report’s findings to support more transparent and timely monitoring of efficiency advancements.
The IEA’s ‘Energy Efficiency Policy Toolkit 2025’ further complements the report with strategic guidelines for policymakers, advocating a comprehensive approach that combines regulation, information dissemination, and incentives. This integrated policy package aims not only to drive energy efficiency gains but also to improve energy security, create jobs, increase living standards, and reduce emissions. Real-world case studies included in the toolkit demonstrate the effectiveness of various policy instruments across sectors and geographies, providing practical lessons to accelerate the adoption and enforcement of energy efficiency measures.
In summary, while the projected acceleration in 2025 signals a positive shift, the global rate of energy efficiency improvements remains critically short of COP28 ambitions. Achieving these goals will require intensified policy action to unlock the full potential of technological innovations, with particular focus on the industrial sector and new building standards. For professionals engaged in industrial decarbonisation, this underscores the importance of advocating stronger policy frameworks, fostering technology adoption, and leveraging international experience to drive meaningful efficiency improvements on a global scale.
- https://www.power-technology.com/news/global-energy-efficiency-progress-2025-iea/ – Please view link – unable to able to access data
- https://www.iea.org/reports/energy-efficiency-2025 – The International Energy Agency’s ‘Energy Efficiency 2025’ report provides an in-depth analysis of global energy efficiency trends, highlighting a projected 1.8% improvement in primary energy intensity for 2025, up from 1% in 2024. The report underscores the need for enhanced policy actions to meet the COP28 target of a 4% annual improvement by 2030, emphasizing the importance of closing policy gaps and raising the ambition of existing measures to accelerate progress.
- https://www.iea.org/reports/energy-efficiency-2025/executive-summary – The Executive Summary of the IEA’s ‘Energy Efficiency 2025’ report outlines key findings, including a projected 1.8% improvement in global primary energy intensity for 2025. It highlights challenges such as the concentration of energy demand growth in the industrial sector and the lag between technological advancements and policy development. The summary calls for stronger policy actions to unlock faster progress and achieve the COP28 goal of doubling the global average annual rate of energy efficiency improvements by 2030.
- https://www.iea.org/reports/energy-efficiency-2025/industry – The ‘Industry’ section of the IEA’s ‘Energy Efficiency 2025’ report examines energy consumption patterns, noting that industry accounts for nearly 40% of total final consumption. It highlights that since 2019, industrial energy demand has accelerated, contributing two-thirds of the total increase in global energy demand. The report emphasizes the need for targeted policies to improve energy efficiency in the industrial sector to meet global energy efficiency goals.
- https://www.iea.org/reports/energy-efficiency-2025/energy-efficiency-policy-toolkit-2025 – The ‘Energy Efficiency Policy Toolkit 2025’ by the IEA offers a comprehensive guide for policymakers, integrating the Policy Package for Energy Efficiency with concrete examples for each end-use sector. It provides strategic principles to enhance and expand energy efficiency policies and programmes, aiming to accelerate action on energy efficiency through a combination of regulation, information, and incentives.
- https://www.iea.org/reports/energy-efficiency-2025/energy-efficiency-policy-toolkit-case-studies – The ‘Energy Efficiency Policy Toolkit: Case Studies’ section presents real-world examples of successful energy efficiency policies across various sectors and countries. These case studies offer practical insights into effective policy instruments, outcomes achieved, lessons learned, and challenges encountered, serving as a resource for policymakers to design and implement effective energy efficiency measures.
- https://www.iea.org/reports/energy-efficiency-2025/the-energy-efficiency-policy-package – The ‘Energy Efficiency Policy Package’ section of the IEA’s ‘Energy Efficiency Policy Toolkit 2025’ outlines a comprehensive approach to achieving significant energy efficiency gains. It emphasizes the importance of combining regulation, information, and incentives to create effective policy packages that can enhance energy security, create jobs, increase living standards, reduce energy bills, and lower emissions.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on the IEA’s latest annual report, ‘Energy Efficiency 2025’, published on 20 November 2025. ([iea.org](https://www.iea.org/reports/energy-efficiency-2025?utm_source=openai)) This recent publication indicates high freshness. The report was launched in parallel with an update to the IEA Energy Efficiency Progress Tracker, assessing progress towards the COP28 target of doubling the global average annual rate of energy efficiency improvements by 2030. ([iea.org](https://www.iea.org/events/energy-efficiency-2025?utm_source=openai))
Quotes check
Score:
10
Notes:
The direct quotes in the narrative are consistent with the IEA’s ‘Energy Efficiency 2025’ report. ([iea.org](https://www.iea.org/reports/energy-efficiency-2025/executive-summary?utm_source=openai)) No discrepancies or variations in wording were found, suggesting the quotes are accurately attributed and not reused from earlier sources.
Source reliability
Score:
10
Notes:
The narrative originates from the International Energy Agency (IEA), a reputable organisation known for its authoritative analyses on global energy trends. The IEA’s ‘Energy Efficiency 2025’ report is a primary source, ensuring high reliability. ([iea.org](https://www.iea.org/reports/energy-efficiency-2025?utm_source=openai))
Plausability check
Score:
10
Notes:
The claims in the narrative align with the IEA’s findings in the ‘Energy Efficiency 2025’ report. The report indicates a projected improvement in global primary energy intensity by 1.8% in 2025, up from 1% in 2024, and highlights challenges in meeting the COP28 target of a 4% annual improvement by 2030. ([iea.org](https://www.iea.org/reports/energy-efficiency-2025/executive-summary?utm_source=openai)) The narrative also accurately reflects the IEA’s emphasis on the need for stronger policy measures to accelerate energy efficiency progress.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on the IEA’s recent ‘Energy Efficiency 2025’ report, published on 20 November 2025, ensuring high freshness. The quotes are consistent with the report, and the IEA’s reputation as a reliable source further supports the narrative’s credibility. The claims are plausible and align with the IEA’s findings, indicating a high level of confidence in the assessment.
