9th IEA Annual Global Conference on Energy Efficiency

Your Excellencies,

Dear Ministers,

Ladies and gentlemen,

It is an honour to be here today.

Let me first thank you for hosting us in beautiful Kenya, in its lively capital Nairobi.

It is the first time that this meeting is being held outside Europe – and the fact that we are here, in Kenya, in Africa, is very telling.

At COP28 last December, Kenya was an important driving force in launching the Global Pledges on Renewable Energy and Energy Efficiency.

Being here is also a strong signal of just how important this continent is in the energy revolution.

The deal we reached last December was historic. For the first time in history, we committed to transitioning away from all fossil fuels, charting a 1.5-degree pathway for the world’s energy transition. Now the focus must turn to implementation.

In this regard, energy efficiency will be key – and not just for countries with high energy consumption today. By doubling energy efficiency improvements globally by the end of this decade, we can make a big difference. Including here in Africa where still too many people do not have the luxury of turning lights on after dark or cook with polluting fuels.

The big question however is funding. Specifically – what actions do we need to take to secure funding for our global energy efficiency targets.

The EU believes that there are three critical factors at play:

First, we need strong policy and legislative frameworks. These set targets, identify measures, clarify the role of the public sector, and give the private sector greater stability and predictability.

Over the past few years, the EU has consolidated its own framework. We now have a binding final energy consumption target for 2030 with mandatory and voluntary measures for reaching it. We also have new rules for reducing emissions and energy use of buildings across the EU.

The second critical factor for securing funding is an efficient use of public resources.

This is important for fostering innovation, and ensuring we have available data and analysis to support policy and investment decisions. Well targeted funding and financial instruments also lower potential risks and transaction costs.

The EU stands ready to explore areas for enhanced cooperation with all our partners on how we can better use public resources. We have already committed EUR 2.3 billion to be mobilised in partner countries – in addition to massive domestic efforts.

Third and final factor at play – we need a stronger dialogue on energy efficiency with market and private investors.

Public financing for energy efficiency has grown significantly in the past years. But we need to ramp up annual private investments too. This is critical – it is estimated that private investments will account for at least 80% of total investments.

The EU is tackling this head on in its domestic market. Just recently, the European Commission launched an Energy Efficiency Financing Coalition.

It establishes a new cooperation framework between Member States, financial institutions, and the Commission to help unlock private investment for energy efficiency improvements.

We are also committed to helping others mobilise investments. In Africa, the DESIREE programme with the European Investment Bank is boosting investments in energy efficiency on the continent. We also want to make “funding and financing” a key pillar of the implementation of the COP28 outcomes and mobilise all potential funders including multilateral development banks.

Ladies and Gentlemen,

In the past, energy efficiency was often overlooked in discussions on energy and climate policies. This is no longer the case.

Energy efficiency is critical on so many levels. For driving the clean energy transition. For enhancing our competitiveness. For making our economies and societies more resilient.

Alongside renewable energy, we need energy efficiency to meet the world’s growing energy demand because otherwise we will not phase out fossils on time.

Energy efficiency brings many other benefits. It improves air quality. It helps businesses save energy so they can invest their savings in other productive areas. It encourages more efficient industrial processes.

The bottom line is – energy efficiency is a clear no-regret option.

So I call on all of you here to be ambassadors for energy efficiency in your countries and organisations. Whether you are public or private sector, from Europe or Africa, or elsewhere in the world – I call on us all to work together as we strive to implement our global energy efficiency target.

Thank you.

Source – EU Commission