Action on energy demand could save the global economy $2 trillion a year: WEF

Workers set the tone for the World Economic Forum's annual meeting in Davos, Switzerland, Sunday, May 22, 2022. (Gian Ehrenzeller/Keystone via AP)

A series of business actions aimed at reducing the intensity of energy demand could generate annual savings of at least $2 trillion a year for the global economy if action is taken by the end of this decade, a new WEF report shows. investigation Monday.

These targeted practical actions can also boost growth and reduce greenhouse gas emissions.

Releasing the report ahead of its annual meeting in Davos from January 15 to 19, the World Economic Forum (WEF) said the right policy frameworks would unlock growth and productivity, save companies money, deliver competitive advantage and reduce emissions.

The report was launched in partnership with PwC and is supported by more than 120 global CEOs who are members of the WEF's International Business Council (IBC), a group representing 3 percent of global energy consumption.

In one of the most widely supported initiatives at the United Nations COP28 climate conference, governments pledged to triple the world's renewable energy capacity by 2030 and double the pace of energy efficiency improvement over the same period.

Countries must reduce their energy intensity at least twice as fast as in previous years between 2023 and 2030, which will require substantial changes from the private sector.

The WEF highlighted the practical actions that companies can take to meet energy demand and said these would be driven by reductions in energy intensity in buildings, industry and transport.

Examples include energy saving measures such as using artificial intelligence to optimize factory line design, energy efficiency, value chain collaboration, industrial clustering to share clean energy initiatives, modernizing buildings and electrifying transportation.

First print: January 8, 2024 | 12:17 pm IST