The Energy Efficiency Market Report is the IEA’s flagship report on energy efficiency trends around the world. Questions addressed in this year’s report include: Are we improving energy efficiency fast enough to achieve our climate goals? Which countries and policies are having the greatest impact and what is the secret to their success? How much is being invested in energy efficiency globally, in specific regions and in the main energy-consuming sectors? How are low energy prices impacting energy efficiency investments? What are the multiple benefits of energy efficiency for the climate, energy security and public budgets? What are the market trends for energy efficiency services and financing? Speaker for this webinar: Tyler Bryant

1. Global progress on energy efficiency
Energy Efficiency Market Report 2016
Tyler Bryant
Project Manager and Lead on Energy Efficiency Markets

2. © IEA 2016
Energy efficiency core indicators
Policy drivers of the efficiency market
The impact of changing energy prices
Investment and market development
Energy Efficiency Market Report 2016

3. Intensity improving but not fast enough
Global annual energy intensity gains
In 2015, global intensity improved by three times the average of the last decade, despite a low price
environment. Intensity gains need to increase to 2.6% to achieve our climate goals.
-3,0%
-2,0%
-1,0%
0,0%
2003-13 2013-14 2014-15 2016-30
(2 degree goal)

4. © IEA 2016
Policy delivers the benefits of energy efficiency
• Energy efficiency is the one energy resource all countries possess in abundance,
and is an essential part of delivering all energy goals.
• Global energy efficiency gains are accelerating, even in the current low price
environment.
• 2015 saw global investment in energy efficiency grow 6% to $221 billion.
• Energy efficiency is now at a scale to influence global energy markets, and is
becoming more central in climate change responses.
• Strong Government policies are essential to deliver the energy efficiency
improvements the world requires.

5. Energy efficiency is the main driver of
intensity improvements
Final energy demand and energy demand if efficiency had not improved over 2000 levels in IEA countries
Without efficiency gains energy demand in 2015 in IEA countries would have grown by 1% and
would have been higher than the 2007 peak. Instead, energy demand is 1% below 2000 levels.
130
140
150
160
170
2000 2002 2004 2006 2008 2010 2012 2014
TotalFinalConsumption(EJ)
Energy demand
without efficiency
Actual energy demand

6. Energy efficiency is saving CO2 emissions
CO2 emissions savings from efficiency improvements since 2000 in IEA countries and China
In 2015, efficiency gains in IEA and China reduced their combined emissions by 15%. Efficiency
policy in China has become one of the most important global actions to reduce emissions.
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
GtCO2
IEA countries
China

7. Energy efficiency reducing energy bills
Avoided expenditure on energy from energy efficiency improvements in IEA countries
Energy efficiency led to $4 trillion cumulative savings since 2000, in Canada savings were $16 billion
-100
0
100
200
300
400
500
600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USDbillions
Freight transport
Passenger transport
Residential
Industry and services

8. Energy efficiency improving energy security
Avoided imports for IEA members from efficiency gains, 2015
The EU made up half of all IEA import savings and reduced imports bills by $27 billion (10% of its
total energy import bill)
0
5
10
15
20
25
30
0
20
40
60
80
100
120
EU Japan Korea United States
USDbillion(2015)
Mtoe
Coal Oil Natural gas Avoided import expenditure

9. China - an energy efficiency heavyweight
Primary energy savings from efficiency gains since 2000 and renewable energy supply in China
Dramatic progress on energy efficiency since 2006 saved 350 million tonnes of coal in 2014. Energy
savings are as large as China’s renewable energy supply.
-10
-5
0
5
10
15
2000 2005 2010 2014
EJ
Other
Natural gas
Oil
Coal
Renewable energy supply
Energy Savings

10. Gains are driven by the expansion of policy
Share of global energy use covered by mandatory standards and regulations
30% of the world's energy consumption is now covered by mandatory standards and regulations,
up from 11% in 2000.
0% 10% 20% 30% 40% 50% 60% 70%
World total
Electric motors
Heavy-duty vehicles
Appliances
Space heating
Light-duty vehicles
Lighting
2015
2000

11. South Africa
United States
Mexico
Korea
Japan
Indonesia
India
European Union
China
Canada
Brazil
Australia
Policy coverage around the world
China has the world’s largest coverage thanks to its industrial energy savings targets, EU increased its
coverage from 6% in 2000 to 23% in 2015.

12. Not just about coverage, policies are
strengthening
Weighted increase in the stringency of energy efficiency standards
Canadian policies have strengthened in-line with the OECD average
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Canada China France Germany India Italy Japan Korea Spain UK United States Total
Performance weighted by TFC Performance of only regulated end uses

13. Measuring growth in policy effectiveness:
The EPPI
IEA Efficiency Policy Progress Index (EPPI) increase by end use, 2005-15
The EPPI tracks combined progress of policy coverage and strength. The most progress was in the
buildings sector and the largest potential for improvement is in the freight and industrial sectors.
0%
5%
10%
15%
20%
25%
30%
Air
conditioning
Space
heating
Light-duty
vehicles
Water
heating
Large
appliances
Electric
motors
Heavy-duty
vehicles
IncreaseintheEPPI

14. © IEA 2016
EPPI shows large EU members as leaders:
0% 2% 4% 6% 8% 10% 12% 14%
India
Korea
Spain
Canada
UK
Japan
Italy
China
US
Germany
France
EPPI score in 2015
France, Germany leading in our EPPI score driven almost exclusively by standards for residential
heating systems and building code improvements

15. Still significant potential to save energy
Energy savings potential of standards as a share of global end-use energy, 2015
If all standards matched the best standards, total savings could be up to 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Space cooling Space heating Hot water Lighting
Highest existing
standards
Average
standards

16. © IEA 2016

17. Technology prices drops are opening up
new markets
Global annual energy savings from efficient lighting and LED bulb prices
Falling LED prices boosted global investment to $6 billion and generated incremental annual
savings of 140 TWh.
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20
40
60
80
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120
140
160
0
10
20
30
40
50
60
70
80
2010 2011 2012 2013 2014 2015 2016
Annual energy
savings
(right axis)
United States
IndiaUSD TWh
Price (left axis)

18. Energy efficiency investment is growing
in response to policy
Global incremental investment in energy efficiency by sector, 2015
Investment in energy efficiency increased by 6% in 2015, led by growth in the buildings sector.
USD 221 billion 53%
18%
29%
25%
13%
6%
10%
9%
9%
15%
13%
Building envelope
Heating, ventilation and cooling
Appliances
Lighting
Energy-intensive industry
Other industry
Light-duty vehicles
Freight and aviation
Buildings
Transport
Industry

19. The market for energy efficiency services
appears poised for growth
Mergers and acquisitions for energy service firms is up since 2000 with their revenues growing to
USD 24 billion globally in 2015.
0
10
20
30
40
50
60
70
80
2000 2002 2004 2006 2008 2010 2012 2014
Number of mergers and acquisitions for
energy efficiency services firms
ESCO Market Share
(Total market size: USD 24 billion)
United States
6 254
European Union
2 700
China
13 279
Other
1 945

20. © IEA 2016
EEMR Concluding messages
• Global energy intensity improvement is accelerating, despite declining
energy prices, but more is required.
• Policy delivers, but stronger policy is required: Still 70% of global energy
use is outside of any mandatory efficiency requirements.
• Energy efficiency is a central component of any suite of actions to meet
GHG targets.
• Countries can learn from each other on energy efficiency. The IEA will
continue to lead global analysis and knowledge exchange.

21. Energy efficiency is key to the 2 degree
scenario
World Energy Outlook 2016
World energy-related CO2 abatement by scenario

22. Deintensifying and decarbonizing the
energy sector
Global GDP, energy demand and energy-related CO2 emissions trajectories by scenario
World Energy Outlook 2016

23. © IEA 2016
History indicates that different paths are
possible
• A tale of two centuries: OECD Europe
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20
25
1820 1840 1860 1880 1900
1820=1
TPES GDP
0
2
4
6
8
10
12
1900 1920 1940 1960 1980 2000
1900=1

24. The energy transition:
Below 2 degrees is a question of when
All low carbon pathways drive to zero emissions, the issue is how quickly this can be achieved.
World Energy Outlook 2016
Indicative global energy sector emissions budgets and trajectories for different decarbonization pathways
WORLD ENERGY OUTLOOK 2016

25. © IEA 2016
Thank you
www.iea.org/eemr16