The demand for energy services, which combines the impacts of activity and structure, in the 26 International Energy Agency member countries increased by 1.8% per year over the period 1990 to 2004. This was less than the annual growth rate of GDP at 2.3%, due to the fact that some energy-using activities grew more slowly than the economy as a whole.
All parts of the economy contributed to this increased demand for energy services. The highest rates of growth were in the service and domestic passenger and freight transport sectors, followed by manufacturing and households. Even in the wealthiest countries, consumers have shown a robust and sustained desire to enhance their lifestyles in ways that require more energy services. This is borne out by detailed analysis of the key drivers of energy demand, such as ownership and use of vehicles, housing size and occupancy, and floor space and electricity demand in the service sector.
About half of the increased demand for energy services was met through increased energy use, and the other half through improvements in energy efficiency, which averaged 0.9% per year between 1990 and 2004.
“Improvements in energy efficiency have played a key role in limiting increases in energy use and CO2 emissions in IEA countries. However, it is clear that much more can be done.
Gains in energy efficiency are currently only about half the rate seen in the 1970s and 1980s,” said Nobuo Tanaka, Executive Director of the Paris-based International Energy Agency (IEA), today in Berlin at the launch of a new IEA publication, Energy Use in the New Millennium: Trends in IEA Countries (summary). The study examines how changes in energy efficiency, as well as other factors such as economic structure, income, prices and fuel mix have affected recent trends in energy use and CO2 emissions in IEA countries. This work was undertaken by the IEA in support of the G8 Gleneagles Plan of Action for Climate Change, Clean Energy and Sustainable Development.
The IEA is the energy watchdog of the industrialised countries, including Ireland.
“Savings since 1990 from better energy efficiency have resulted in CO2 emissions in the IEA being 14% (or 1.2 Gigatons of CO2) lower than they otherwise would have been. These savings are approximately equivalent to the annual final energy consumption and CO2 emissions of Japan and, by the end of the period analysed, resulted in annual fuel and electricity cost savings of at least $170 billion," noted Tanaka.
The book reveals many insights that should reshape our approach to energy efficiency. For instance, electricity use in the household and service sectors is increasing much more rapidly than consumption of fuels, such as gas and oil, in these sectors. As a result, appliances and air conditioning are rapidly approaching space heating as the most significant source of CO2 emissions from households. New engine technologies and vehicle design have produced significant efficiency benefits in passenger cars. However in many countries, the benefits of introducing more efficient vehicles have been eroded by increased congestion, changes in driver behaviour and additional in-car amenities. On a more encouraging note, strong efficiency improvements are having a substantial impact in manufacturing. Energy use and CO2 emissions in this sector have remained almost unchanged since 1990, even though output has increased by nearly one-third.
Energy Use in the New Millennium: Trends in IEA Countries exposes the critical need for more timely and better information with which to judge the value of existing energy policies and to identify the stronger policies needed to meet the challenges identified by the G8 leaders. The results have been calculated by a “bottom-up” analysis of key indicators which describe in detail energy use and energy-using activities across five major sectors (manufacturing, services, households, passenger and freight transport) in 20 out of 26 IEA countries. However, even these countries struggle to provide the necessary data for all sectors. “Governments need to put substantially greater resources into developing and improving end-use data to enable effective monitoring of energy consumption and CO2 trends at deeper levels of detail”, emphasised Tanaka.
Despite some positive developments, the new publication clearly shows that IEA countries are not on a path to a sustainable energy future. “We must find new ways to accelerate the decoupling of energy use and CO2 emissions from economic growth. The good news is that there is still substantial scope for cost-effective energy efficiency improvements in buildings, appliances, industry and transport. The bad news is we need to move much faster in realising this potential. This will require strong and innovative action on the part of governments,” concluded Tanaka.
The International Energy Agency (IEA) acts as energy policy advisor to 26 Member countries in their effort to ensure reliable, affordable and clean energy for their citizens. Founded during the oil crisis of 1973-74, the IEA’s initial role was to co-ordinate measures in times of oil supply emergencies. As energy markets have changed, so has the IEA. Its mandate has broadened to incorporate the “Three E’s” of balanced energy policy making: energy security, economic development and environmental protection. Current work focuses on climate change policies, market reform, energy technology collaboration and outreach to the rest of the world, especially major producers and consumers of energy like China, India, Russia and the OPEC countries.
With a staff of around 150, mainly energy experts and statisticians from its 26 member countries, the IEA conducts a broad programme of energy research, data compilation, publications and public dissemination of the latest energy policy analysis and recommendations on good practices.