The Energy Efficiency Movement (EEM) has released its latest study, examining the barriers to implementing energy-efficient solutions in industrial sectors worldwide and proposing actionable strategies to accelerate energy efficiency adoption and drive industrial competitiveness.
The study comes at a pivotal moment, with government ministers, CEOs, and other senior leaders soon joining the International Energy Agency’s 10th Annual Global Conference on Energy Efficiency. Co-hosted by IEA Executive Director, Dr Fatih Birol, and European Commissioner for Energy and Housing, Dan Jørgensen, and organized in partnership with the Energy Efficiency
Movement, the conference aims to maximize the potential of energy efficiency in boosting affordability for consumers, industrial competitiveness, and energy security.
The report reveals that, despite 68% of companies increasing their energy efficiency budgets in recent years, over eight in ten professionals still believe their organizations fail to allocate enough resources to implement energy efficiency projects. This gap may be linked to weak leadership, as over one third of respondents struggle to prioritize energy efficiency. This finding is consistent with the conclusion of a study by DNV GL, which highlighted that nearly half of the potential energy savings in energy-intensive industries could come from management and behavioral shifts, rather than technological upgrades.
“Enhancing efficiency in energy use is an essential strategy for sustainable and competitive development,” noted Mike Umiker, Executive Director, Energy Efficiency Movement. “Energy efficiency relies on optimizing existing systems, making it a pragmatic and immediate solution to improve a business’ bottom line and tackle environmental challenges. It plays a pivotal role in
mitigating climate change, strengthening the security of energy supply and reducing economic burdens associated with excessive energy consumption.”
When asked about the obstacles businesses face to achieving greater energy efficiency, 43% cited financial concerns as the most significant, followed by adapting infrastructure (19%), insufficient skills (15%), and strategic shortcomings (12%) — such as a lack of visionary leadership which includes energy efficiency as a goal worth pursuing — and data and control challenges (11%). According to the study, key factors such as the lack of skilled workers or issues in collecting reliable energy data, discourage action for half of the companies.
Despite these hurdles, the report underscores the benefits that industries can reap by accelerating the adoption of energy efficiency measures, and provides an actionable way forward. Energy efficiency can serve as a competitive advantage, helping organisations to excel in a turbulent global marketplace. “Energy efficiency is a key foundation of a secure, affordable and sustainable energy future,” emphasized Brian Motherway, Head of the Office of Energy Efficiency and Inclusive Transitions, International Energy Agency (IEA). “But to unlock its full potential, governments must put the right policies and programs in place, and industry must treat efficiency as a core business strategy — not an afterthought.”
The study offers insights to help overcome these barriers, such as establishing dedicated energy efficiency budgets, exploring alternative financing models, and developing targeted business cases with clear ROI calculations. Notably, the report outlines a practical roadmap for industries to adopt energy efficiency measures, including detailed guidance on securing dedicated funding and managing strategic energy efficiency opportunities.
These are fundamental steps to make energy efficiency the ‘first fuel’, as the IEA labelled it— an abundant and cost-effective resource that reduces the need for additional energy supply and paves the way to net zero.
Download the full report here: Efficiency Now: Overcoming Barriers to Energy Efficiency.