Energy Efficiency Whitepaper - EN

FOREWORD
By HE Abdulla Nasser Lootah, Deputy Minister of Cabinet Affairs for

Competitiveness and Knowledge Exchange, Chairman of the Emirates
Competitiveness Council, and Vice-Chair of the National Committee on
Sustainable Development Goals (SDGs), and Vice-Chair of the Global
Council on SDGs.
As Vice Chairman of the Global Councils on Sustainable Development

Goals (SDGs), it is my distinct privilege to extend my heartfelt
appreciation for the remarkable work carried out by the chairmanship
and members of the Global Council on Energy Efficiency, and to EDF
and Schneider Electric for leading the production of this insightful
and visionary report on Energy Efficiency.
Members of the Global Council on Energy Efficiency, under the

leadership of its Chair, Mr. Luc Remont and Vice Chair, Dr Nawal Al
Hosany, and the thought leadership and expertise demonstrated by
the joint team created by EDF and Schneider Electric, have not only
provided a comprehensive overview of the current landscape but
have also highlighted innovative solutions, best practices, and case
studies that demonstrate the tangible impact of energy efficiency. It
is heartening to see these great minds working together to take the
lead in driving this conversation and inspiring action.
GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 2

In an era where our collective commitment to sustainability and the
pursuit of the SDGs has never been more critical, this report serves
as an invaluable compass, guiding us toward a more sustainable
future. It encapsulates a wealth of knowledge, innovation, and
strategies that are essential for addressing one of the most pressing
global challenges – ensuring that energy efficiency remains at the
forefront of our efforts to build a greener, more resilient world.
It is impossible to overestimate the significance of energy efficiency.

Optimizing our energy use is not only a goal, but a need given
the fast-changing climate, rising urbanization, and rising energy
demands. This paper provides a path for a future with more
sustainable and efficient energy sources while also recognizing its
importance.
I encourage leaders, policymakers, industries, and communities

around the world to draw inspiration from the insights presented in
this report. Together, we must embrace these findings and translate
them into concrete actions that propel us closer achieving the SDGs.
Our collective commitment to energy efficiency will not only reduce
our environmental footprint, but also drive economic growth and
improve the quality of life for all.
Abdulla Lootah

OPENING
REMARKS
Luc Rémont HE. Dr. Nawal Al Hosany

Chairman and CEO EDF Group The Permanent Representative
of the UAE to IRENA
It is with great pleasure and a shared sense of responsibility that we,

as the Chair and Vice Chair of the Global Council on Energy Efficiency,
unite in extending our sincere congratulations on this ground-
breaking report on Energy Efficiency produced by Schneider Electric
and EDF.
In our roles both within the council and externally, we are aware
of the urgent need for concerted efforts to address the challenges
posed by climate change and unsustainable energy consumption.
This report stands as a beacon, illuminating the path towards a
more sustainable future. It reflects not only the expertise of many
governments, businesses, organisations, and individuals around
the world but also the collaborative spirit required to navigate the
complex landscape of global energy efficiency.
As stewards of the SDGs, we are heartened to witness the

alignment of this report with our shared vision for a world that
is environmentally resilient, socially equitable, and economically
prosperous. The insights within these pages underscore the integral
role that energy efficiency plays in achieving multiple SDGs, from
clean energy access to climate action and beyond.

This comprehensive collaboration provides a thorough analysis of
the current state of energy efficiency best practices from around
the world and emphasizes the pivotal role of technology in driving
progress. The integration of cutting-edge technologies, smart
systems, and innovative solutions is paramount to enhancing energy
efficiency practices globally. The report serves as a testament to the
transformative power of technological advancements in creating a
more sustainable energy landscape.
Moreover, we recognize the indispensable role of young people in

shaping the future outlined in this report. The enthusiasm, creativity,
and commitment of young minds are instrumental in driving change
and fostering a culture of sustainability. We call upon the younger
generation to engage actively in advocating for and implementing
energy-efficient practices. Empowering young leaders, supporting
educational initiatives, and providing platforms for innovation will be
key in realizing the ambitious goals set out in this report.
We urge leaders across all sectors and borders to heed the lessons
and recommendations that have been made. The collaborative spirit
demonstrated by the members of the Global Council on Energy
Efficiency, combined with the transformative potential of technology
and the unwavering dedication of policy makers, businesses,
academia, and society, should serve as a model for global cooperation
in addressing the multifaceted challenges of our time.
Luc Rémont Dr. Nawal Al Hosany

EXECUTIVE
SUMMARY
Energy efficiency is an essential lever for decarbonization
trajectories. The International Energy Agency expects energy
efficiency to contribute up to 20% to total decarbonization of the
energy system by 2050 in its Net Zero Emissions scenario. Without
energy efficiency, the efforts made on other levers (in particular, the
behavioral lever) will be too ambitious or even unattainable.
Our current energy system is widely inefficient: two thirds of the

energy it extracts is lost at different steps of the energy cycle.
Technology solutions have been available for many years to improve

energy efficiency in the building sector, in industry and for mobility.
Solutions involving, in particular, a mix of electrification and
digitalization provide great potential for priority action and can be
deployed quickly.
Yet, energy retrofit is not deployed at scale even though available

financing is not lacking. But the economic barriers are many: the
need for upfront investments; stability and simplification of incentive
schemes ; insufficient return on energy efficiency investments; and
“harmful” subsidies supporting inefficient solutions. In addition,
energy savings from available solutions and offers may appear
insufficient or too uncertain. But current high energy prices, threats
of energy or power shortages as well as enhanced offers for energy
performance contracts have created the context for a much more
attractive investment decision.
Integrating existing financing solutions has the potential to reduce
upfront costs and improve visibility on energy and financial returns.
Two powerful catalysts can help with this integration: digitalization, in
order to streamline processes and aggregate assets; and partnerships,
in order to mobilize the best skill sets at all steps of these complex
multi-asset investment programs.
Investing in energy efficiency carries a positive impact on net

employment, through direct job creation (e.g., installers, service
providers), indirect job creation (e.g., manufacturing activities)
and induced job creation. Delivering part of those investments
will require new skills and resources in energy management,
integration of energy efficiency solutions, building design and
construction.
For a rapid deployment of energy efficiency solutions, priority should

be given to the following areas: strong support of investment in
efficient solutions (example: efficient lighting, heat pumps, EVs,
electrification of industrial processes, etc.); the end of harmful
subsidies for inefficient and fossil-based solutions; the gradual ban on
the sale of inefficient solutions (in lighting, heating or mobility); and
an increase in energy prices (proportional to their carbon content)
accompanied by support for the most vulnerable populations which
are most exposed to the impact of any rebound effect.

Table of contents
Forward 2
Opening Remarks 4
Executive Summary 6
Section 1 – Introduction 11
Decarbonization of the economy must drastically accelerate 11
How can the world break the carbon lock-in? 13
There are reasons for energy efficiency to be considered as a critical
solution to decarbonization 14
Progress on making the economy more efficient is still too slow, however 15
There is a larger story at play, however: boosting the efficiency of the
energy system as a whole 15
A more systemic perspective of energy efficiency could thus be the key to
reconciling sustainable development with economic development 16
Building an efficient energy system while mitigating rebound effects 17
A framework to navigate energy efficiency 17
Section 2 – Moving to action: what are the priorities? 18
Taking action in the building sector 21
Applying eco-friendly actions can reduce household energy
consumption by 10 to 20%. 21
Digital solutions in the home make these gains sustainable over time. 22
Heat pumps: the reference solution in buildings for greater efficiency
and a transition to low-carbon energy sources. 23
Digital solutions encourage sensible and sustainable energy
renovation, considering the “unique” architectural features of buildings
and the life plans of their occupants. 25
Digital solutions are also a key lever in new constructions where
inefficiencies are significant. 26
Taking action in industry 27
The data-generating “smart factory” opens up new potential for energy
efficiency gains. 27
Motors and lighting: an example of mature energy efficiency solutions
that are developing favorably. 30
The electrification of industry, combined with a low-carbon energy
mix, is an essential lever. 31
Heat pumps: promising “firsts” and the “wall” of steam to break down. 31
Industry in its local environment: circular economy and energy
efficiency 32

Taking action on mobility 32
Energy efficiency in transport requires a transformation of everyday
mobility. 32
The development of electric mobility must be accompanied by the
development of V1G and V2G to guarantee the overall performance of
the electrical system. 36
Section 3 – Enablers 37
Public Policies 38
Financing 39
Current positive trends supporting energy efficiency investments and
financing 39
Financing residential building renovation 40
Financing Industry decarbonization: 42
Conclusion 45
Jobs 46
Energy Efficiency as major job creation engine 46
Youth and Sustainability 47
Energy Efficient Youth 47
Conclusion 48
Appendices 49
Appendix 1: Case studies 49
Local community of residents in Nice, Côte d’Azur metropolitan area to
reduce energy demand during peak consumption periods 49
Samwoh’s “Smart Hub,” a pioneering achievement as Singapore’s first
energy-positive industrial building 49
Integrated platform for building management and analytics at Resorts
World Las Vegas 49
Building Management Systems (BMS) at Takeda’s facility in Singapore 50
Salvador’s “Lighting our Neighborhood” Program installs LED lamps to
improve economy, efficiency and security (provided by C40 Cities) 50
The Global Lighthouse Network initiative on Smart manufacturing
launched by the World Economic Forum 51
Reduce the environmental footprint of the whole supply chain 51

Brilliant Planet : flexibility and efficiency for a carbon capture industrial
process developed in Morocco 53
Industrial high-temperature heat pumps to improve the efficiency of
heat production 53
Synergies between industrial players in the north of France to reduce
their ecological footprint 54
Increase the modal share of cycling in France 55
Energiesprong : a global alliance to develop simple Net Zero Energy
Buildings 56
Johannesburg - Green Bonds Fill Gaps in Financing Climate Projects.
Provided by C40 Cities 56
Kampala, Dar es Salaam and Durban - Capital investment plans.
Provided by C40 Cities 56
Impactful sustainability for youth initiatives across the world 58
Private Sector Engagement: Schneider Electric Go Green Competition
Program 60
Les Collectifs: Atlas des actions 61
Community & Academia Engagement: Student Energy Summit 2023 &
Japan Youth Ecology League 61
Appendix 2: Jobs descriptions 62
Jobs with Impact 62
References 64

INTRODUCTION
Decarbonization of the economy must drastically accelerate
During COP27 in Sharm El-Sheikh, global leaders
reunited to discuss and commit to further efforts
to accelerate the decarbonization of the economy.
Despite progress on multiple fronts (notably on loss
and damage), the COP fell short of expectations. In his
closing remarks in Sharm El-Sheik, the COP26 president
Alok Sharma declared:
“Emissions peaking before 2025, as the

science tells us is necessary. Not in this text.
Clear follow-through on the phase down of
coal. Not in this text. A clear commitment
to phase out all fossil fuels. Not in this text.
And the energy text, weakened, in the
final minutes. Friends, I said in Glasgow
that the pulse of 1.5 degrees was weak.
Unfortunately, it remains on life support.” 1
Thanks to the work of the Intergovernmental Panel on

Climate Change (IPCC2), a 1.5-degree global warming
by mid-century is now widely regarded as the key
target to reach. The work of the IPCC also expands to
consolidating a variety of scenarios to achieve this and,
despite their differences, pathways remain equally
ambitious, with a rapid transition away from fossil fuels,
a decline in emissions of 30-50% by 2030, and zero
(net) emissions by mid-century.
Yet, the stark reality is that these emissions have

increased by an average 1% per year in the last
decade3. We thus stand at an inflection point, a “make- Figure 1 – Greenhouse gas emissions, per sector, as of 20194
or-break” moment. It is in this context that COP28 is
taking place in Dubai, with a clear objective from the
Presidency to deliver an ambitious energy package
which includes tripling renewable energy capacity and
doubling the rate of energy efficiency improvements
across sectors by 2030, including ramping up
electrification and enhanced cooling approaches, to
enable the phase down of fossil fuels:
Greenhouse gas emissions today total around

50-55GtCO2e/year, out of which energy accounts for
around 39GtCO2/year, or 75% of total (Figure 1). A
1.5-degree climate compatible pathway is thus also
one that transforms the energy system.
1
UK COP26, 2022
2
IPCC, 2014, 2021, 2022
3
Based on data from ©OECD/IEA, 2017, 2021.
4
Climate Watch data, 2023. Emissions reported here account
for 51GtCO2e/y. The IPCC (2022) reports total greenhouse gas
emissions of 59GtCO2e/y for the same year.

How can the world break the carbon despite economic growth. BloombergNEF6 maps
a net-zero scenario until mid-century with a final
lock-in? energy demand on par with current consumption. The
International Renewable Energy Agency (IRENA7) also
This report aims to provide answers to this key follows a similar path. The 2021 International Energy
question. And its focus will be on energy efficiency, Agency8 Net Zero Emission scenario (NZE) models an
comprising energy efficiency improvements (of energy system with a final energy demand by 2050 that
equipment, appliances, vehicles and building is 20% lower than current demand (Figure 2), a finding
envelopes, etc..) as well as electrification. The reason consistent with other scenarios, such as those from the
for this focus is that energy efficiency is now widely Energy Transitions Commission or Schneider Electric9.
acknowledged as a key driver of decarbonization.
The growing consensus is thus that final energy
Scenarios from the IPCC5 consistent with a 1.5-degree demand must be significantly optimized to make a
trajectory all assume a final energy demand by 2050 climate-compatible trajectory possible.
that is lower or on par with current energy demand,
Figure 2 – Final energy demand across scenarios10
5
IPCC 2022
6
BloombergNEF, 2022
7
IRENA, 2023
8
©OECD/IEA, 2021b
9
Schneider Electric, 2021
10
Schneider Electric, 2021 ; IRENA, 2023. Note that there is a slightly
different baseline level for IRENA.

Figure 3 - Emissions reductions by mitigation measure in the NZE, 2022-2050 (courtesy of the International Energy Agency)
The International Energy Agency also considers energy buildings and a variety of industries14. Passive efficiency
efficiency and electrification to contribute to up to 40% solutions can bring higher savings, in the range of 15-
of total decarbonization of the energy system by 2050 50%, with longer paybacks, however, in the range of
in its Net Zero Emissions scenario (NZE, Figure 3) 10-30 years15.
Another reason for the attractiveness of energy

efficiency is, quite simply, that it works! Energy
There are reasons for energy efficiency has already demonstrated its contribution
to decarbonization. In the period 2016-2021, the
efficiency to be considered as a International Energy Agency estimates that energy
critical solution to decarbonization efficiency has more than halved global growth in
energy demand, thereby mitigating associated
“Energy efficiency is the “first fuel”11, a fuel for which emissions by a similar factor.
“demand (…) needs to grow”, and a fuel which
does not require to be produced nor procured. The
International Energy Agency12 estimates that, thanks to
energy efficiency13 measures, costs for households in
“advanced economies” could be reduced from today’s
by nearly 20%. Other studies have found paybacks of
2-8 years for digital solutions for efficiency, across both
11
Motherway B, 2019
12
©OECD/IEA, 2021b
13
and efficient electrification
14
Schneider Electric, 2021b ; © OECD/IEA, 2017b
15
©OECD/IEA, 2012, Energy Star, n.d., BPIE, 2022

In addition, energy efficiency also acts on the Primary energy intensity improvements reached 2%
baseline of energy demand. If less energy needs to 2022 (compared to well below 1% in the previous
be decarbonized, the corresponding investments to years). This is however far behind the 3-4% per year
decarbonize the remaining energy supply will therefore targets of the International Energy Agency Net Zero
be lower, and more attractive. It avoids growth in Emissions scenario and the IRENA 1.5-degrees pathway
fossil fuels infrastructure (hence associated costs, for the decade to 203020.
both capital andoperational expenses), and reduces
growth in electricity demand, hence associated costs of Investments reached a record high of $US560 billion
infrastructure development. in 2022, a figure to compare, however, to the $US1,500
billion required for the period 2026-2030 in the Net
A final reason for its attractiveness is that energy Zero Emissions scenario21.
efficiency often comes with positive second order
effects, such as comfort for households (more modern
and efficient heating or cooling systems), or quality
for manufacturing (more precise heating or motion
There is a larger story at play,
systems, also reducing wear and tear), and these play a however: boosting the efficiency of
critical and often underestimated role in the process of the energy system as a whole
adoption and change.
Energy efficiency is thus widely recognized as a critical
Additionally, the potential for energy efficiency is huge.
solution to rapid decarbonization of the energy system.
Let’s take a few examples. In the steel industry, the
It also shows strong potential, across all economic
global average energy intensity ranges around 22GJ/
activities. Yet, progress to date has typically been
ton of steel, with best available technologies around
slow, and much more needs now to be achieved, in a
20GJ/ton, and a thermodynamical limit of around
short period of time. This is the purpose of this paper:
10GJ/ton (BF-BOF route). In the cement industry, the
to cover both what is feasible, but also some of the
global average is around 3.5GJ/ton, with best available
roadblocks that have so far hampered its development.
systems at around 3GJ/ton and a thermodynamical
optimum of 1.8GJ/ton16. The average energy intensity
Our current energy system is widely inefficient and
of buildings17 ranges around 150kWh/m2, with best-in-
wastes around 2/3rd of the energy it extracts in the
class construction projects now around 50kWh/m2, or
first place. As can be seen in Figure 4, the actual useful
3 times less. Motor systems could be quickly upgraded
to better systems, with average savings of around 20%18. energy required to provide for daily use services is
And the list goes on. A US study notably suggested only a fraction of the total, mainly due to the process
a potential of 50% overall, 2.5 times higher than of burning fossil fuels to produce heat, which is
the IEA projection within the Net Zero Emissions then used to fulfill direct needs such as building and
scenario, for instance19. industrial heat, mobility, industrial motion, etc. The
efficiency of such conversion from fossil fuels to heat
to other services is traditionally very low, resulting in
significant losses.
Progress on making the economy
more efficient is still too slow, however Reducing losses in the energy system would
significantly contribute to reducing emissions, as the
However, despite its potential, the deployment of latter are the corollary of the former. There is more to it
ambitious energy efficiency programs has lagged, with as well. While the neo-classical economic approach has
an acceleration in 2022 primarily due to the energy generally overlooked its role, given its limited direct
crisis, which followed the Russian invasion of Ukraine contribution to GDP23, it has become clear over many
in that year, and which led energy prices to skyrocket. energy crises that energy is more than just a means
16
©OECD/IEA, 2007, ©OECD/IEA, 2022
17
Enerdata, 2021, Tengfei et al., 2019, University of Michigan (n.d.). Commercial buildings have typically much higher energy intensities than
residential buildings. The figure above is thus an order of magnitude, mainly applicable to urban settings.
18
©OECD/IEA, 2011, ©OECD/IEA, 2022, ©OECD/IEA, 2020
19
Nadel et al., 2019
20
©OECD/IEA, 2022b ; IRENA, 2023
21
©OECD/IEA, 2022b
23
Jefferson, 2014

Figure 4 – The US energy system22
to an end, and that sustainable economic growth and A more systemic perspective of energy
development largely rely on a resilient, affordable and
efficient inflow of energy, with many economists now
efficiency could thus be the key to
studying this in greater depth24. reconciling sustainable development
with economic development
In fact, economists have suggested that efficiency in
the conversion and use of energy resources is a key The definition of what energy efficiency is must
factor of economic growth, alongside (and maybe therefore be expanded to account for all these
ahead of ) capital and labor productivity25. contributions that can have an impact on the overall
efficiency of the energy system. Exploring the system
In other words, an efficient energy system not only as depicted in Figure 4, we suggest a framework made
contributes to decarbonizatione, it also plays a of 3 key categories, and largely inspired by existing
fundamental role in economic growth. academic work and the ASI framework26
22
LLNL, 2021. We must note that primary energy estimates for
nuclear and renewable are based on conventions, and thus such a
reading of efficiency is more valuable for fossil fuels than it
actually is for high-density energy resources such as nuclear, or free
renewable energies.
24
Foxon, 2011 ; Jefferson, 2014
25
These economists use exergy instead of energy for their
measurements. Their analyses, across a variety of countries around
the world, show an average of around 80% losses across the energy
system, in exergy terms. Ayres, 2011 ; Ayres & Warr, 2005 ; Serrenho
et al., 2014 ; Serrenho et al., 2016 ; De Stercke, 2014.
26
LCreutzig, Callaghan, et al., 2021; Creutzig, Niamir, et al., 2021;
Creutzig et al., 2018; Nadel et al., 2019.

1. Opportunities to improve current applications Typically, these rebound effects are classed within three
and equipment: the traditional scope of energy categories: direct rebound effects (related to savings on
efficiency (e.g., more efficient motors, LED lights, a specific service that prompt additional consumption
digital controls in buildings). of the same service ; indirect rebound effects (savings
on a specific service that lead to additional purchases
2. Opportunities to shift current applications and
of other services); and macroeconomic rebound effects
equipment to more efficientenergy resources, i.e.,
(economic growth, labor supply, etc.).
electrification (e.g., electrified power trains are 3 times
more efficient than traditional combustion engines). While such rebound effects are also synonyms of
3. Opportunities to avoid energy use for different service increased wealth, how they impact decarbonization
provisions: new ways of arranging service provisions pathways is of major importance. We will review
to limit resulting energy needs (e.g., sharing models or the evidence as we progress through the solutions
remote work, but also behavioral shifts). identified. We will see that, for direct rebound
effects at least, there are many solutions that exist to
In this report, we will explore these opportunities and mitigate them.
differentiate between those that could be rapidly adopted
(chapter 2) and enablers that require more profound
changes to the way services are provided (chapter 3). A framework to navigate energy
efficiency
Building an efficient energy system As we navigate the contents of this report, we will list
while mitigating rebound effects a number of key solutions to improve energy efficiency
globally, including changes in behavior.
Energy efficiency measures have also been criticized
in the past for the rebound effects that they incurred27. The following figure summarizes our key findings.
Energy Efficiency Opportunities
Solution Potential Adoption / Issues

Buildings
Avoid Eco-friendly actions Up to 20-30% savings observed Behaviors and possible rebounds over time
2/3 energy saved compared to
rd
Initial capital
Shift Heat Pumps traditional boilers/furnaces Electricity prices and taxation, relative to e.g., natural gas
Paybacks below 8 years in average
Digital technologies
Improve 10-40% savings No rebound
LED lights Lack of awareness of benefits
Industry
Emerging
Avoid Circular Economy 5-20%28 Lack of effective value chains
Lack of business models
Lack of awareness and competencies
Savings up to 30-50% in some
Shift Electrification and Heat Pumps Process redesigns
cases29 Electricity prices and taxation
Motor systems
Improve Up to 20%
Digital technologies
Mobility
Avoid New patterns (e.g., remote work) 1-15% savings Subject to rebound effects, lack of clarity
2/3rd energy saved compared to Availability of charging infrastructure
Shift Electrification traditional engines Cost parity by 2030 across most segments / regions
Vehicle efficiency
Lightweighting Limited for efficiency Rebound effects on efficiency observed
Improve Modal shifts and mobility as a Up to 40% for modal shifts Availability of public transportation infrastructure
service
27
Brockway et al., 2021; Creutzig et al., 2019; Wadud et al., 2016
28
Creutzig et al., 2021
29
Beyond Zero Emissions, 2018

MOVING TO ACTION:
WHAT ARE THE PRIORITIES?

Manish Pant
Executive Vice-President of International Operations,
Schneider Electric
We need to be working on both sides of the equation

– supply and demand.
Most of the time, we look at the supply side of the equation,
which is obviously fossil fuel generation and ask, how can
we change the supply to something which is green? Carbon
capture operates the same way, in that you produce it and
then capture it.
The demand side is something which is, to a large extent, hidden.
At home, the only visibility is your electricity bill. So we need
to ensure homeowners, and commercial and industrial users
can see what is happening – what are the elements they can
control and therefore make a difference.
Today with digital technologies, everything is visible in real
time on our mobile phones. With home automation, you
can see what you’re using. You can control it. You can switch
it off, you can programme it. The same is true for industrial
applications and infrastructure. You can really monitor your
energy in real time and therefore you’re able to intervene
and act on it. It pays for itself.

Energy Efficiency: The Decade for Action”: this is compared to the previous decade. As shown in the
how the IEA titled its 8th Annual Global Conference figure below30, efforts need to be doubled with
on Energy Efficiency that took place in June 2023 in contributions from all sectors (Building, Transport and
Versailles. This is also a clear call to accelerate action as Industry) and with energy efficiency being a key lever,
current efforts and ambitions (Stated Energy Policies as well as behavior and fuel switching.
Scenario by 2030) fall short of the IEA’s trajectory in its
Net Zero Emissions by 2050 scenario. EU commissioner In this section, we will cover all 3 sectors (Building,
Kadri Simson also proposed, at the press conference Transport & Industry), focusing on actions and
closing the informal meeting of environment and solutions that have a significant impact and are mature
energy Ministers on 12th July, doubling the global enough to be implemented on a global scale by 2030.
rate of energy efficiency improvements this decade
30
Energy Efficiency - The Decade for Action (Ministerial Briefing), IEA
(June 2023)

Taking action in the building sector The effectiveness of the measures depends on good
targeting of actions, which requires detailed sectoral
data on final energy and power consumption. The right
Applying eco-friendly actions targeting of measures makes it possible to identify the
sectors in which savings can be made at limited social,
can reduce household energy economic and political cost.
consumption by 10 to 20%.
Most of the reduction in demand comes from a limited
Case studies show that electricity saving plans in number of measures in:
shortage situations can be very effective. Savings can
be as high as 20% - Japan 2001, Brazil 2001 - or even 1. Industry: on-site self-production, shifting
30% in extreme, short-term cases - Alaska. In most production times or even transferring production
cases, the savings programs have made it possible to in the event of localized shortages, measures on
avoid blackouts. motors and pumps, etc.
2. Tertiary and Residential: room temperature
adjustment, limitation of air-conditioning operating
hours, substitution by other heating sources in the
case of dual-energy housing, unnecessary lighting
off, number of light points reduction, alternating
street lighting, lighting of public facilities reduction,
disconnection of unused or unnecessary equipment
(second refrigerators and freezers), use of equipment
modification (e.g. using the dishwasher, not
using the tumble dryer, shifting the period of use,
increasing the fill rate), shorter shower duration,
lowering the temperature of DHW cylinders), etc.
3. Businesses: improved management of heating,
ventilation and air conditioning (buildings
Estimated savings achieved through emergency energy‐saving programs31
are over-ventilated, lighting and temperature
management), even though it is difficult to
implement in the short term.
YOKYO TOHOKU KANSAI In most studies, prices have risen sharply and are likely
Target -15% -15% -10% or more to have played an important role in achieving energy
Results -19% -18% -8% savings. Price signals are effective, particularly for peak-
Large customers -27% -18% -9%
load savings.
Small customers -19% -17% -10%
Households -11% -18% -4% In countries where the volume of savings has been
very high, rationing coupled with penalties (or even
the threat of blackouts) has been introduced, often
Estimation of Electricity Demand Reduction by Sector in Summer targeting large consumers, and sometimes all sectors
2011 Compared to 2010 Summer Levels (Weather-Adjusted)32 including households.
Financial incentives are sometimes used and prove

Savings measures in these emergency situations are very effective (e.g. reduced bills in California in 2001).
effective if implemented over a short period, but most
are difficult to maintain. However, some practices can be Even in crisis situations it is possible to encourage
adopted for the long term, particularly in the residential investment in efficient equipment, but it must be
sector. Industries usually stop measures that are affordable.
considered very restrictive, if there are no obligations.
31
Update 2011 Saving electricity in a hurry update 2022 - Sara Bryan
Pasquier – International Energy Agency
32
Saving Electricity in a Hurry: A Japanese Experience after the Great
East Japan Earthquake in 2011 - Osamu Kimura and Ken-ichiro
Nishio, Central Research Institute of Electric Power Industry

Information campaigns wereimplemented in all the Further studies have demonstrated the benefits of
cases studied. They are essential and reinforce the even more detailed control of usage. A hot water tank
effectiveness of other measures. They are widely that is controlled during off-peak hours can see its
disseminated and adjusted by sector and by use. energy consumption fall by a further 3% to 7% if it
When it comes to reducing peak demand, messages is controlled according to how hot water is used by
are disseminated on a daily basis with simple households. Self-learning algorithms now have the
recommendations on a limited set of actions. capacity to anticipate draw-off habits and manage
the heating of hot water as closely as possible to
The measures implemented are very conventional consumers’ needs.
(thermostat, lighting, etc.), and it is important to target
those with a significant potential for savings (either in When it comes to heating, ADEME33 considers that the
terms of consumption or peak effect). use of a thermostat capable of finely managing the set
heating temperature by controlling reductions during
night-time or unoccupied periods can reduce energy
consumption by 15% in France. EDF R&D studies show
Digital solutions in the home make savings of 20 to 35%, depending on usage.
these gains sustainable over time.
Controlling flexible use is also a way of increasing the
Controlling energy use in the home is a source of use of photovoltaic self-production. Studies carried
energy savings and CO2 emissions. The development out by EDF R&D, on the basis of field monitoring, have
of the use of electric storage water heaters in the shown that the proportion of energy produced by a
housing stock in the 1970s, combined with off-peak home’s rooftop photovoltaic systems and consumed
hours, made it possible to shift a large volume of by the home’s uses could increase by 20 to 35% by
consumption from peak hours to off-peak hours. In controlling the equipment, particularly the production
doing so, the production of hot water at night had of domestic hot water. In this context, control takes into
a second impact: by bringing it closer to morning account both sunshine and user behavior forecasts.
consumption, the off-peak system reduced the heat
losses associated with storing large quantities of Overall, studies show that we can get 10-20%
hot water. Recent studies carried out by EDF R&D energy efficiency in households, and 10-40% in
have estimated that 12% of savings can be made by commercial buildings, with paybacks below 8 years
controlling hot water tanks. in many cases and as low as 2 years in specific cases
(see figure below). It is also worth mentioning that
digital solutions are key when it comes to maintaining
savings over time and limiting rebound effects.
1980 standard building, paybacks by region (category A)34
33
Agence de l’environnement et de la maîtrise de l’énergie, the
French public agency for the environment and energy management
34
Cracking the Energy Efficiency Case in Buildings, Schneider Electric
Sustainability Research Institute (October 2021)

Heat pumps: the reference solution
in buildings for greater efficiency and
a transition to low-carbon energy
sources.
Heat pumps are booming in many countries. As the
graph35 below shows, the penetration rate is very high
in Scandinavian countries such as Denmark, Finland
and Norway, demonstrating that heat pumps are not a
technology reserved exclusively for temperate climates.
Emblematic of the concept of renewable energy, heat

pumps recover calories from an external medium
(ground, water, air) to supply heat and/or cold to the
target environment.
The simplest version to install, the aerothermal heat

pump (Air/Air or Air/Water), consists of an outdoor unit
that can be installed on a roof terrace, on the ground
or on a balcony, and an indoor unit. It recovers heat
from the outside air and distributes it to the air in the
building. This is a very widely developed solution,
not only in countries with warm climates, but also, as
shown in this figure36, in countries with moderate or
even cold climates.37
35
EHPA, feb. 2023 (https://www.ehpa.org/press_releases/heat-pump-
record-3-million-units-sold-in-2022-contributing-to-repowereu-targets/)
36
EHPA Market Report 2022
37
https://ars.els-cdn.com/content/image/1-s2.0-S2542435123003513-mmc1.pdf

The performance of heat pumps is
expressed by their COP (for Coefficient Of
Performance). This is the ratio between
the energy supplied (heating a home,
for example) and the energy consumed
(electricity to run the heat pump).
The figures on the right were drawn

up on the basis of an analysis by EDF
R&D of the normative performance38
of several dozen of the best-selling
products in France.
At an outdoor temperature of 0°C,

an air-to-air heat pump achieves an
average COP of 4, which means that for a
consumption of 1 kWh of electricity, the
machine is capable of providing 4 kWh of
heating for a home. The “free” 3 kWh are
then taken from the environment.
This “theoretical”
performance can also be seen
in the field, and continues to
improve. The figure39 below
summarizes the performance
of 250 heat pumps installed
in Germany. In 10 years, the
average COP of air/water heat
pumps installed in existing
buildings for renovation
purposes has risen from 2.6
to 3.0 on average over the
whole year.
38
Certified values of test results in accordance with NF EN 14511 under the
partial load conditions of NF EN 14825 for calculating seasonal performance.
39
Heat pumps in existing residential buildings, Fraunhofer ISE, 2021

Digital solutions encourage sensible
and sustainable energy renovation,
considering the “unique” architectural
features of buildings and the life plans
of their occupants.
The digital revolution has not affected the construction
industry to the same extent as other sectors, but
change is underway. BIM (Building Information
Modelling) is no longer reserved for large new tertiary
complexes. Attaching a database to a physical asset is
developing in all sectors, as attested by the housing
information booklet. These digital solutions will
undoubtedly increase households’ motivation to act.
The energy renovation business is characterized by a

high degree of fragmentation. Apart from the specific
case of social housing, demand is usually from private
individuals. Even in the case of condominiums, the
decision-making process is so long that individualized
solutions are preferable.
Upstream of these sectors, the construction industry adaptable. But it is not likely to reassure customers.
offers a range of products. However, when it comes How can they have confidence in quality and deadlines
to renovation, the prescription business is often if the craftsman himself cannot see the site unfolding
reduced to its simplest form. Product specification before his very eyes when he draws up his quotation?
is usually the result of the installer’s habits, the
customer’s practical constraints and the availability In this context, renovation must be accompanied
of distribution networks. The service provided by the by a layer of services upstream of the work. These
product, its impact on energy efficiency or comfort services must bring professionalism to the industry
is usually left out of the equation. In some cases, an and confidence to customers. They must also provide
approximate assessment of requirements can lead technical and practical justification for the solutions
to over-consumption or worse, when products are in proposed. The development of 3D scanning, BIM,
short supply, to improvisation in the field with product image analysis and the ever-increasing amount of data
sourcing being guided by local availability and a available on the Internet, from connected objects or
project’s constraints, in particular its deadlines. smart meters, are all sources that can be exploited to
make renovation work more objective, to industrialize
Fluctuating costs are another notorious problem in the processes involved, and to produce diagnostics,
the renovation industry - a source of perplexity and quantity surveys and estimates almost automatically.
even skepticism among customers. It’s not uncommon
that prices vary by a factor of three with the same Artificial intelligence methods can carry out an energy
request for work and the same expression of need. It diagnosis of an existing building without any input
all depends on the company’s workload, the hope of other than the external data that may be collected
winning the customer’s loyalty, the company’s level for that building. It is therefore possible to build a
of qualification for the work requested, the solution diagnostic tool based on the interpretation of images
chosen... Of course, there will always be outliers, but available on the Internet, using deep learning neural
it is fair to say that most of the renovation work meets network technologies. This exercise requires the
standard needs for which a little professionalization, availability of many images and the involvement of
based on modern practices, would make it possible to experts to ‘label’ these images in order to train the
rationalize the preparation of quotations. neural network. Street-View images can be widely used
for this purpose. The aim is to automatically identify the
The approximate nature of quotations shows that the key elements of a given building in order to produce
renovation industry is satisfied with a certain degree a digital model capable of dynamically calculating its
of imprecision. This proves that companies are highly energy behavior.

With an estimate of the building’s energy behavior and Digital solutions are also a key
its main dimensional characteristics, it is possible to
draw up technical designs (insulation surfaces, number lever in new constructions where
and size of windows, power of an energy system, inefficiencies are significant.
number of extractions and air inlets for a mechanical
ventilation system, etc.) for renovation solutions, with a Although new constructions offer more opportunities
good level of detail in terms of the services offered. of doing things right first time in terms of energy
efficiency, inefficiencies are still a big challenge. And
The reliability of these tools will be greatly enhanced the stakes are significant, especially in new economies
in the future by ‘self-care’ solutions that allow users to where urbanization is still ongoing. What studies40
carry out their own 3D scans of their homes using their show us is that:
smartphones. Applications using LIDAR - light impulse 1. Construction accounts for more than 13% of global
radar - or virtual reality are offered on most recent GDP (including capital equipment; 6-7% without)
smartphones. and employs over 7% of the global workforce,
around 250 million people for a net contribution of
Moving on to the automatic quotation stage can then around US$10 trillion annually.
be done in different ways, either by using standard
2. As a whole, this sector has made virtually no
services available in the technical literature (e.g.
productivity gains in several decades.
BATIPRIX) or by using standard services provided by an
installation company that subscribes to the automated 3. Civil and industrial construction is generally more
quotation system. Reference can also be made to any efficient, handled by large and well-organized
public data on renovation support schemes. enterprises with strong engineering, process, and
procurement activities, yet the bulk of construction
lies in smaller projects and all the specialized
contracting that goes with them (painting, roofing,
plumbing, electrical works, etc.), which drives
down productivity significantly. In fact, many of
these activities may have experienced negative
productivity over the last decades.
40
See for example : “Reinventing construction through a productivity
revolution”, McKinsey Global Institute (Feb. 2017)

4. This is notably due to the inherent fragmentation former often take the form of large and concentrated
of the sector. In the European Union, construction sites, which therefore require focused efforts at
companies with more than 250 employees barely upgrading facilities to Best Available Technologies (for
contribute 20 percent to the total sector output. which the potential remains high) and deploying new
Figures are similar, if not worse, in the United States. technologies, such as heat recovery, electrification,
hydrogen and others. The latter is more fragmented,
5. This also has to do with the significant volume of
and often composed of Small and Medium Enterprises
regulations that apply to the sector, on average (in
(SMEs). The challenges these companies face is thus
the United States) seven times more than in other
different: lower capacity to investment, higher ability
sectors (such as agriculture or mining).
to turn around rapidly. In both, the potential for
This fragmentation and huge complexity lead to decarbonization and energy and operational efficiency
coordination and project management issues, remains high. And modern technologies such as digital
misaligned incentives, global underskilling, and can play a significant role in accelerating the spread of
underinvestment. Digital solutions are a key lever to energy efficiency within industry – this is often referred
close these gaps. to as smart manufacturing.
Yet, today, fewer than 30% of companies have

successfully deployed smart factory programs at
Taking action in industry scale41. Because of the extremely positive impact on
energy and resource efficiency, on top of operational
The role of the industrial sector is both fundamental efficiency, it is critical that public and private
and transformative. It forms the backbone of our organizations step up their efforts to scale up smart
world’s economic development - from the production manufacturing for a more sustainable et energy
lines of factories to high-tech research labs. There is a efficient world.
strong link between productivity and value creation. The data-generating “smart factory”
Industries transform raw materials into finished goods,
a process that creates significant value. The industrial opens up new potential for energy
sector, encompassing a vast range of activities, also efficiency gains.
plays a pivotal role in job creation. And these jobs
come with higher-than-average incomes, leading to
increased living standards and thereby contributing to The Industry of the Future refers to all the transformations
social progress in a more inclusive world. taking place within existing or new plants.
Despite these benefits, industrial activities also come The term “industry” is used to encompass all
with a sustainability challenge. Industry is indeed manufacturing and production activities, which are
accountable for around 30% of global greenhouse gas not necessarily located on the same industrial site.
emissions. Heavy industries are responsible for a little Some manufacturers produce their products in a
over half of these (55%), with light industries forming so-called “extended” factory. For example, when BMW
the rest. Both need to be considered separately. The produces a car, several factories around the world work
41
McKinsey https://www.mckinsey.com/capabilities/operations/our-
insights/covid-19-an-inflection-point-for-industry-40

in parallel and in coordination to manufacture the Operational excellence, a philosophy that encourages
various components that will then be assembled. For continuous improvement, leadership, and teamwork,
example, the assembly plants in Leipzig and Munich is the toolbox for productivity and it intersects
coordinate the production of more than 20,000 parts remarkably with sustainability goals. It can be best
per vehicle produced worldwide, with the plants defined by 3 pillars: Process, People and Technology.
being interconnected.
1. Process Efficiency: Process efficiency lies at the
The Industry of the Future primarily concerns existing core of operational excellence, with an essential
plants, which are being transformed in order to principle being the elimination of waste. When
become more competitive and adapt to changes, viewed through the lens of sustainability, waste
particularly those linked to changes in customer takes on a broader meaning. It involves not just
demand. This means being more agile and being able inefficient business practices, but also the waste
to adapt production almost in real time. of resources and energy. Lean methodologies and
other similar process improvement tools can be
The notion of the Industry of the Future therefore used to identify these inefficiencies. By eliminating
encompasses all these transformations and is broken waste and reducing resource usage, businesses can
down into five main areas: flexible plant, digital plant, enhance productivity while also contributing to
plant in harmony with people, plant that reduces environmental sustainability.
its environmental footprint and a corporate citizen.
2. Technology: Data analytics provide insights into
Digital technology and Green Tech technologies are
process performance and environmental impact,
increasingly present in all these areas.
while automation technologies reduce repetitive
At the core of the change management process
tasks and decrease raw materials and energy
toward smart factories lies operational excellence.
resource consumption. However, it’s vital to
Operational excellence serves as a foundation for
remember that technology should augment, not
productivity and efficiency in industrial operations.
replace, the human aspect of operational excellence.
By continually improving processes, fostering
leadership and teamwork, and eliminating waste, 3. Empowering People: Operational excellence
companies can achieve operational excellence. When is fundamentally about people. Employee
combined with sustainability goals, operational involvement in the quest for operational excellence
excellence becomes a powerful driver of economic and sustainability can spark creativity and
growth, wealth creation and environmental success. problem-solving, driving further improvements
By optimizing resource usage and reducing energy in productivity. Encouraging a culture where
consumption, organizations can achieve both employees feel empowered to suggest sustainable
enhanced productivity and contribute to long-term improvements and are rewarded for their initiatives
sustainability through efficiency. forms the bedrock of this approach.

Such development can prove beneficial at every level New technologies such as 5G, AI, cloud and edge
of the enterprise: computing, robotics, and industrial metaverse(s)
further strengthen the case for Smart manufacturing.
At operator level: Thanks to the large number of And Smart manufacturing companies are already
measurement sensors, production machines are natively equipped to implement such technologies.
increasingly incorporating assistance and automation
functions. Operators focus their attention on the Overall, the potential source of energy savings is
control screens, which provide an overview of the data estimated at 40% of current consumption.
produced by the sensors in real time, without having
the time or expertise to analyze it. We can classify the various actions to be taken into four
main areas:
At the level of the company’s main functions: The
digitization of the factory has paradoxically siloed 1. Rethink the “recipe” for your product by using less
functions. Sales, Production, Finance, HR - each has material, less energy and more natural materials.
specialized in its own field, manipulating its own
2. Optimize Assets efficiency: Recover energy losses
data and KPIs. This compartmentalization affects
with energy recovery machineries. Upgrade to higher
overall performance and defines the limits of the
performance machineries, robotic, automation and
company’s computerized system. The cross-use of this
apply variable speed drives on motors.
compartmentalized data within the company would
offer new performance levers. 3. Optimize Plant Efficiency: Integrate Sustainability
KPIs into Operational Excellence practice. Upgrade
At the middle management level: These managers to Smart factory through Digital transformation.
complain that on average they spend 25% of their time Implement new processes to enable circularity in-
on reporting instead of managing their teams. manufacturing plants.
4. Optimize Value Chain: Optimize your operation
Also, manufacturers are under increasing pressure to
from design to operation with digital twins. Share
reduce their environmental footprint. Improving the
data with ecosystem. Exchange energy, materials,
performance of plants is also an opportunity to take
co-products or waste with other local players.
environmental performance into account.
Here are some of the typical Operational KPIs when At workshop and plant level, this means implementing
driving continuous improvement toward operational all the energy efficiency solutions, using the best
excellence practice in sustainability: available techniques and processes that substitute
decarbonized electricity for fossil fuels, and recovering
1. Waste Reduction. waste heat.
2. Water Consumption Reduction.
3. Wastewater Reduction.
4. GHG Emission Reduction.
5. Energy Efficiency.

To achieve this, a systemic approach is needed As in other areas, the collection, management and
to identify the optimum solutions and organize analysis of data will enable new optimization levers to
progressive investment. Product lifecycle analyses be activated, and the entire energy and pollution cycle
(LCA) can identify the most polluting operations, and of product manufacture to be better controlled.
eco-design can consider the projected environmental The success of these transformations depends on
impact of the product’s use. increased synergies between a company’s business
lines and the exchange of data.
Energy and “exergy” analyses (economic value
and usability of the energy source) include all the
components of the transformation processes. The Motors and lighting: an example of
approach must be carried out at the level of detail
required to put the process studied into perspective mature energy efficiency solutions
in relation to competing processes, and to incorporate that are developing favorably.
the limitation of pollutant emissions of all kinds.
According to the International Energy Agency42, 21% of
To obtain the most energy-efficient solution, the electricity consumption could be saved if a traditional
methodology involves estimating the minimum energy energy system was replaced with an energy efficient
required (MRE) to manufacture the product. This system.
estimate will be used to implement improvements that
are possible, sustainable and economically optimal. Electric motors account for 70% of electricity
For example, recovering waste heat with a heat pump consumption in industry. Replacing an IE1 motor with
could lead to the replacement of a boiler. an IE3 or IE4 motor improves efficiency by an average
of 2 to 5%. Installing an electronic variable speed drive
Other solutions need to be considered, including: on an electric motor can deliver energy savings of 15
to 20% on average for processes with variable loads.
1. Better management of the plant’s increasingly The audit carried out on a chemical site in Normandy
electrical equipment. identified potential electricity savings of 800 MWh/
2. Electrifying transport (internal and external), i.e. the year by replacing 25 electric motors, representing an
supply chain. investment of €135k and a payback period of 2 years.
3. Reviewing the general organization of the

production system, based on digitization and
increasingly available data, taking into account the
need for production flexibility.
4. Including the environment parameter in plant
improvements.
5. Making better use of data.
As part of their digital transformation to improve

performance and develop new products,
manufacturers need to take environmental parameters
into account from the outset, so that they can make
virtuous investment choices.
42
Energy Efficiency Policy Opportunities for Electric Motor-Driven
Systems, IEA (2011)

The electrification of industry, Heat pumps: promising “firsts” and
combined with a low-carbon energy the “wall” of steam to break down.
mix, is an essential lever..
The “Net Zero by 2050” scenario proposed by the IEA
Studies show that the potential of electrification is anticipates the installation of 500 MW of very high
>60% across most industries as shown in the graph temperature heat pumps in industry every month for
below43. Some countries have set ambitious targets: for the next 30 years. To achieve this, a number of hurdles
example, French authorities aim to reacha 70% overall need to be overcome, in particular steam production,
electrification rate (in final energy terms) by 2050 vs. which is too widely used in industry to be ignored.
~40% currently. Globally, IEA Net Zero Scenario sets the
target at 50% in 2050 vs. current ~19%. Heat pumps are competing with heat recovery by heat
Although the potential is huge, and the rationale for exchanger, when there is available waste heat that is
Electrification penetration, by sector (% of final energy demand)
electrification is already well established, in order to higher than the temperature of the thermal use that
take action, priority needs to be given to the most is to be supplied. However, there is still a quantity of
cost-effective solutions that are technically mature and unused energy that could be recovered by heat pumps,
sufficiently robust for industrial players to adopt them. estimated at 12% of the thermal needs of industry.
This estimate takes into account the coexistence, both
With this in mind, low-temperature thermal temporal and geographical, of thermal waste to be
applications, and in particular the electrification recovered and thermal needs to be met.
of heat for drying and steam, are probably the
best candidates in the short term. Industrial heat The main challenges are improving competitiveness
pump technologies are relatively mature and offer and integrating very-high-temperature heat pumps
significant energy efficiency gains. Other mature (between 100 and 150°C) into industrial processes,
electrical solutions (boilers, furnaces, mechanical while guaranteeing reliability and optimization.
steam compressors) will also develop, either by
becoming more competitive, or through the In addition to developing this technological solution,
introduction of more attractive public subsidies. the other challenge is to identify the specific or
43
Road to a rapid transition to sustainable energy security in Europe,
Schneider Electric Sustainability Research Institute (October 2022)

even unique industrial situation - the geographical to the modal shift towards soft, less energy-consuming
and temporal location of needs and resources - that modes of transport. Avoid seeks to have a direct
will enable the greatest value to be derived from it. impact on the need to travel by considering the spatial
Researchers are therefore developing on-site energy form and organization of business and residential
diagnostic tools to identify energy optimization actions centers, with the ultimate aim of reducing the need for
and circular economy tools that will make it possible (constrained) mobility.
to identify sources of energy savings and carbon
emissions on a regional scale (see point 2.4). This system of action on mobility was developed in
the 1990s and gained momentum on the international
stage throughout the 2000s. The articulation of these
Industry in its local environment: logics in public policies aims to meet the European
Union’s commitment to reduce transport-related CO2
circular economy and energy emissions by 90% by 2050.
efficiency
Decarbonizing mobility: electrifying vehicle
The energy and, above all, environmental performance fleets (improve)
of industry must be considered beyond the confines
of the plant. While the various scopes for analyzing As observed by Frédéric HERAN and Arnaud SIVERT44,
the environmental footprint encourage this, the the energy efficiency of vehicles has improved
experiments conducted on the theme of industrial significantly over the last 60 years. Between 1960
ecology show that there are real benefits to be gained and 2017, energy consumption per kilometer for
from sharing energy and material flows in order to passenger transport decreased by 39% in France.
make better use of them. But there is still huge potential for further reductions
if all the characteristics of personal vehicles are
considered: not only engine efficiency, but also
Taking action on mobility vehicle mass and aerodynamics.
For car manufacturers, however, there is no question of

Energy efficiency in transport requires touching sensitive features of their products at the risk
a transformation of everyday mobility. of confusing the consumer. On the contrary, they must
continue to move their vehicles upmarket by offering
The fight against climate change in the field of ever more features, to encourage customers to buy
transport is structured around three systemic more sophisticated and more expensive cars and thus
logics: improve, shift and avoid. Improve refers to increase their margins. So, it’s hardly surprising that
technological innovation in modes of transport and their efforts have produced meagre results.
flow management. Examples include innovation
in engine efficiency and the development and
democratization of electric vehicles. Shift corresponds
44
« L’amélioration de l’efficacité énergétique des véhicules individuels
» - Transports Urbains 2022/1 (n°121)

In the 1960s, cars weighed an average of 800 kg. In 2020, the unit fuel consumption observed for the
The weight then increased, reaching 1,293 kg in French fleet45 was 6.8 l/100 km for petrol cars (i.e. 599
2007. Since then, it has fluctuated around 1250 kg, Wh/km) and 5.9 l/100 km for diesel cars (i.e. 572 Wh/km).
because all the efforts made over the last 15 years
to make vehicles lighter have been cancelled out by Electric cars are more energy efficient. A 100% electric
several developments: increased demands in terms of city car will consume around 150 Wh/km, i.e. 3 to 4
safety, greater habitability, new comfort equipment, times less than a combustion engine car. While user
added design features and more powerful engines. costs are already lower than conventional vehicles,
Nevertheless, limiting vehicle weight remains the main purchase costs will drop below those of conventional
objective set by the automotive industry to reduce vehicles by around 2030 across most segments of
greenhouse gas emissions. mobility and regions. For instance, SUVs in Europe
could reach parity by as early as 2025. The same
Many carmakers have also demonstrated that it is sector in India would however reach parity in the early
possible to significantly reduce the aerodynamic 2030s46 . Sales of combustion engines peaked in 2017
drag of their vehicles. But such feats limit innovation and are now in decline. Globally, 14% of passenger
in terms of design, leading to very similar-looking vehicles sold are EVs and that share is expected to rise
vehicles (low height, plunging bonnet, low roof, rear above 30% by 2026. In some countries, such as China
tracks narrower than the front, streamlined tires, solid or Germany, it is already well above 50%. Beyond
rims, etc.). The considerable development of ‘cross-over’ passenger vehicles, bus fleets and two- and three-
vehicles (a cross between a family car and an off-road wheelers are also electrifying rapidly.
vehicle) and SUVs (sport utility vehicles with a high,
bulky body) completely undermines these efforts,
because, compared with a city car, their imposing
silhouette increases the frontal area by around 50%,
which means that aerodynamic drag is increased by
the same amount.
45
https://fr.statista.com/statistiques/486554/consommation-de-
carburant-moyenne-voiture-france/
46
BloombergNEF, 2023

Maria Fernanda Suarez
President, Banco Popular
I’m a believer that with climate change and energy

efficiency, what is really going to get us to a good
place and reach net zero is technology and R&D.
People say all the time, “We are advancing.” But the advances
have not been commercially efficient, so the technology is
there but it is not affordable for people.
If you want to change your air conditioner to the most

efficient one, you need to invest a lot of money. People have
consciences, but it also needs to make economic sense for
them as well.

Modal shift: underlying trends continuing (Shift)
The governance of mobility is part and parcel of
The energy savings achieved by the switch to a modal choice paradigm. Since the 1990s, the
electric cars should not hide the reality of mobility European Union has favored a modal shift policy. At
performance. Cars are still very inefficient in terms the local level of municipalities and conurbations,
of energy consumption, because they essentially there is a collective effort to reduce the use of
transport their own mass rather than people and the car and to offer residents a range of modes of
loads. This “dead weight ratio” (= empty weight / laden transport, drawing on the modelling and information
weight) was as high as 87% in the 1960s. As vehicle capabilities of mobility platforms. Nevertheless, the
occupancy rates fall and vehicles become heavier, this modal shift towards less energy-consuming and less
figure rose to 92% in 2020. This poor performance polluting modes of transport is still very low.
means a huge waste of energy and materials. What’s
more, when it comes to manufacturing a car, “the mass The only shift in the modal mix is generally taking
of raw materials mobilized represents 7 to 10 times place in urban centers, while the rest of the country
that of the vehicle manufactured, not to mention is still largely dominated by the carbon-intensive
the unused materials (soil excavated during the private car. In France, as an example, between 2008
construction of infrastructure, etc.)”.
Current efforts to improve the energy efficiency of and 2019, the modal mix has changed little: the car’s
motor vehicles and reduce their weight are still far share represented 65% of journeys in 2008, and 63%
from sufficient to meet the challenges of the future. in 2019.
To achieve significant results, we will need to design
vehicles that are much lighter and slower. Thanks to Public transport has seen the smallest fluctuation,
its excellent aerodynamics and controlled weight of rising from 8% of the modal share in 2008 to 9% in
50 kg, an electric velomobile travelling at 45 km/h has 2019. Walking has increased slightly, rising from 22%
record energy efficiency, 19 times better than that of a to almost 24% - and finally cycling has stagnated at
1.5 t electric car such as the small EV Renault Zoé (see just under 3%.
table above)47.
The modal shift from the private car to low-carbon
modes of transport requires the development of
intermodality. The development of intermodal
infrastructures is a fundamental trend that has been
emerging for several decades. Many towns and cities
limit their actions to their own perimeter. Setting up
mobility organizing authorities on a regional scale
will make it possible to improve the coherence of
47
“Improving the energy efficiency of individual vehicles” - Transports mobility policies.
Urbains 2022/1 (n°121)

Another important value of shared mobility services Emerging thoughts on demobility (avoid)
is economic. Passenger vehicles typically sit idle over
90% of the time, representing a major immobilization Sociologists emphasize the need to reconcile
of capital. With less recourse to private mobility the social and environmental justice aspects of
capital could be freed up and utilized in other mobility. This paradigm shift involves reflecting
activities with greater economic productivity, i.e., on the fundamental reasons why people need to
another source of efficiency. travel and why they do so. Reducing mobility is
one way of meeting this dual challenge. Policies
The rise of autonomous transportation also based on modal shift and technological innovation
promises significant benefits. Research suggests are currently exclusive and, as many experts have
that its advent could see as much as tenfold cut pointed out, create new mobility needs, as reflected
in mobility costs48. It could also lead to rebound in the steady increase in distances travelled since
effects, however, which are still hard to fully quantify. the 1970s. This logic of reducing travel and mobility
Sources differ on the timing of its development, is already present in household mobility practices:
but most agree that some segments of mobility are remote working and e-commerce are tools for spatio-
likely to be powered by some form of autonomous temporal adjustments in the organization of daily
transport by 2030. True level-5 autonomy would life, making it possible to eliminate travel. Overall,
not be fully available before 2040-2050, however, households in peri-urban areas are implementing
yet uncertainties remain about the speed at which strategies to rationalize travel, particularly by car, by
this may materialize. In addition, the key issue valuing and investing in local activities.
with level-5 autonomy is the actual integration of
autonomous cars with human drivers. Changes
in regulation to avoid this integration and ensure
parallel services could accelerate its development.
The development of electric mobility
must be accompanied by the
In new economies where urbanization is still growing, development of V1G and V2G to
availability of performant public transport and
affordable new mobility services are critical to limit the guarantee the overall performance of
impact of growing congestion due to private cars. the electrical system.
Electric vehicles offer considerable storage capacity
when connected to the grid. It is essential for the
system that electric mobility goes hand in hand with
the development of smart charging - first through
the simple off-peak tariff signal, then in a more
integrated way with the electrical system thanks to
V2G technology.
48
Arbib and Seba, 2017

ENABLERS
When it comes to enablers, it is important to think in terms of emission reduction first: measures,
whether regulatory or incentive-based, must be targeted and calibrated with a view to
decarbonizing the economy, including energy efficiency.
Public Policies Energy efficiency policies are crucial for reducing
energy consumption and environmental impact.
Energy efficiency public policies require a They can be implemented at different levels and by
combination of economic signals and standards/ various actors:
regulations to be effective. Here’s a breakdown of
when each is typically needed. International Level:
Economic Signals (Taxes, Subsidies, Investment • Paris Agreement: An international treaty aimed at
Support) limiting global warming by reducing greenhouse
gas emissions. Countries commit to reducing their
• Incentivizing Adoption: economic signals can carbon emissions, which often involves improving
encourage individuals and businesses to adopt energy efficiency.
energy-efficient technologies and practices. For • Montreal Protocol: Focuses on phasing out ozone-
example, tax incentives or subsidies for purchasing depleting substances, which indirectly promotes
energy-efficient appliances (heat pumps, EVs) or energy-efficient alternatives.
tools (digital platforms) can stimulate adoption.
• Market Transformation: economic signals can help Regional or National Level:
transform markets by making energy-efficient
products and services more financially attractive, • Energy Efficiency Targets: governments set energy
which, in turn, drives innovation and competition in savings targets over a given period of time,
the energy efficiency sector. covering the whole economy and that may be
• Addressing Market Failures: economic signals can distributed by sector
address market failures where the upfront cost of • Energy Efficiency Standards: governments set
energy-efficient technologies is higher, but the mandatory efficiency standards for appliances,
long-term savings are significant. Subsidies or low- vehicles, and buildings.
interest loans can bridge this gap. • Tax Incentives: offering tax breaks for businesses
• Behavioral Change: economic signals can motivate and individuals who invest in energy-efficient
changes in behavior, such as reducing energy technologies and practices.
consumption or investing in efficiency upgrades, by • Low carbon Energy Targets: mandating a
making it financially beneficial. percentage of energy generation from low carbon
sources inherently encourages efficiency.
Standards and Regulations • Energy Efficiency Programs: governments may run
programs to retrofit public buildings and support
• Mandatory Compliance: regulations set minimum industrial energy efficiency.
efficiency standards for appliances, vehicles, and • Public Awareness Campaigns: Governments and
buildings, ensuring that products entering the NGOs can run campaigns to educate the public
market meet certain efficiency criteria. about energy-efficient practices.
• Consumer Protection: standards protect consumers
by ensuring that products and services meet a Local Level:
certain level of quality and efficiency, preventing
the sale of subpar or inefficient products. • Building Codes: local governments can enforce
• Long-Term Planning: regulations provide a long- energy-efficient building codes, ensuring new
term framework that ensures energy efficiency construction and renovations meet efficiency
goals are met consistently over time, even if standards.
economic conditions change. Regulations can be • Public Transportation: expanding and improving
essential for achieving environmental and climate public transportation systems reduces individual
goals, as they set targets that industries must meet car use, promoting energy efficiency.
to reduce their environmental impact. • Green Building Certifications: local certification
programs encourage energy-efficient building
In practice, both economic signals and standards/ practices.
regulations are often needed to drive significant • Municipal Energy Reduction Targets: local
energy efficiency improvements. Economic incentives governments set targets for reducing their own
motivate individual choices, while regulations create energy consumption and emissions.
a baseline that ensures energy efficiency gains are
made across entire industries and sectors. They work in Implemented at different levels and by various actors,
tandem to create a supportive environment for energy these policies and actions collectively contribute
efficiency efforts, fostering innovation and reducing to improving energy efficiency and reducing the
energy consumption. environmental impact of energy consumption.

Financing Besides voluntary commitments, an increased number
of mandatory obligations have also been imposed
especially in Europe: disclosure by companies (CSRD)
Current positive trends supporting and investors (SFDR) of the data related to their
energy efficiency investments and investments’ carbon footprint and impact on other
aspects of sustainable development, obligation for
financing landlords to achieve a minimum energy efficiency level
if they want to rent their properties to third parties, etc.
Technology solutions have been available for many
These new regulations have emerged beyond OECD
years to improve energy efficiency in homes and
countries: for example, in Kenya, as early as 2006, an
businesses and yet, the backlog of energy retrofit is
Energy Act was introduced that requires high energy
staggering49 and this is not for lack of financing. Indeed,
users ($24k/per year) to undergo an energy audit and
until the recent energy crisis in Europe that pushed
obtain recommendations around energy efficiency
gas and other energy prices significantly higher, the
for their businesses. This law has triggered renovation
low cost of energy did not make a compelling case
investments and created a market in which energy
for individuals or companies to invest in retrofitting
efficiency providers compete, hopefully leading to t a
their buildings or production tools. With low power
reduction in the total cost of renovation.
prices, the payout looked unattractive. Also the offer
on the market was not promising substantial energy
The synchronicity of the two trends is fortunate as it
savings, nor guaranteeing these savings would indeed
allows companies’ management to justify investments
be achieved. Current high energy prices, threats of
in energy efficiency in order to deliver on their
energy or power shortages as well as an increased
commitment to reduce GHG emissions, without having
offer for energy performance contracts have
to incur additional costs. In some cases, such intrinsically
created the context for a much more attractive
profitable investments can even be made without the
investment decision.
company making any upfront CAPEX investments,
thanks to the emergence of ESCOs (Energy Service
Similarly, it is only recently that new regulations, in
Companies) and their offer to provide “Energy as a
the EU and other regions, and ambitions towards
Service”, i.e. carry the assets on their own balance sheet
decarbonization have emerged and translated into
so that they do not impact the end users‘.
public commitments from countries and companies
to achieve “Net Zero” targets in the next decades.
The last component of the equation, the capital and
These commitments cannot be delivered soley by
funding to deploy energy efficiency equipment
switching from fossil fuels to clean energy or power
is increasingly available as asset owners and banks
sources. Sufficiency and energy efficiency are key
look for green assets to satisfy their investors and/or
components of the equation to Net Zero.
shareholders (and increasingly all their stakeholders)
to (i) demonstrate their contribution to the energy
transition but also (ii) gradually shift away from
exposure to fossil fuel(ed) assets that could become
stranded in a short to medium term horizon, should
carbon pricing become the norm.
49
For example in Europe, buildings are the single largest energy
consumer, using 40% of our energy and creating 36% of our
greenhouse gas emissions since most of them are not energy efficient
and are still mostly powered by fossil fuels.

With all these positive trends supporting energy But the pace and extent of renovation of residential
efficiency investments and their financing, one buildings remains well under the level needed to
could expect to see massive programs under stay within a 1.5 or even 2 degrees category. The main
implementation and material results observed in hurdles are the following:
terms of reduction of costs and GHG emissions. Yet,
this is not happening - or at least not at the required 1. Energy savings are not sufficient to repay the
pace to deliver the Paris Agreement. deep renovation costs. A more holistic approach
is necessary to identify all the benefits of energy
In the following sections we will focus on two key renovation to balance out the upfront costs needed.
markets where energy efficiency needs to be scaled up
2. Despite the significant number of subsidies
quickly: residential buildings and industrial ones. We’ll
available to support individuals in their renovation
try to identify the key hurdles preventing or slowing
projects, they are disbursed via lengthy and
down the pace of investments, as well as the successful
tedious processes by multiple public entities
innovations that overcame these hurdles and
often using non-digital methods. In addition, many
suggestions as to the ways these could be replicated
people do not feel competent, or patient enough
and scaled up.
to launch such complex and expensive projects,
especially those on low incomes who would
benefit the most, but are often also the ones with
Financing residential building the lowest confidence levels.
renovation 3. Housing quality is often assessed narrowly,
focusing on the technical and environmental
Residential building renovation is a daunting task that performance aspects, whereas broader policy
comes in the form of hundreds of millions of small objectives and impact categories may be more
dispersed and heterogeneous buildings. In Europe appropriate to fully capture multiple benefits,
alone, achieving a decarbonized building stock by including in the long run (e.g. health improvement).
2050 will require around EUR 325 billion annually, 4. Many terms and thematic investment areas (e.g.
with approximately EUR 250 billion for residential and energy efficiency and affordable housing) have
EUR 75 billion for public buildings50. not been universally defined, making it difficult
to identify benchmarks, KPIs and set industry best
Simplifying and harmonizing all schemes to meet the practices51
climate and energy challenges is critical. There are
many different regulatory and incentive schemes for Availability of financing is not a key hurdle, however
renovation, with different definitions, eligibility criteria, banks and other financial institutions interacting
calculation methods and regular revisions, making them with building owners are in a key position to raise
particularly difficult to understand and implement. awareness amongst their customers and offer to
be a trusted advisor to accompany them throughout
Yet the multi-impact nature is often overlooked: their renovation journey, not only in the financing part
beyond the reduction in energy bills derived from the but also in the selection of solutions (deep renovation
energy efficiency retrofit, there are multiple benefits vs superficial one) and the solution providers to
for private owners of buildings or apartments execute it, as well as collection of subsidies and other
that should make such investment decisions easy: relevant energy savings certificates, if any.
improved value of the property (a building with lower
energy bills sells better than one that shows massive Such “one stop shop” offers are not yet mainstream,
heating and cooling costs all year long), improved but they have been tried out in Spain by GNE Finance
health (air quality is significantly cleaner in renovated and in France with the Sociétés de Tiers Financement.
buildings with a direct impact on inhabitants‘ In parallel, the Energiesprong initiative aims to create
health), improved comfort and aesthetics, reduced the conditions to scale up the E=0 buildings thanks
operational and maintenance costs, reduced GHG to simplification, standardization and replication,
emissions resulting in some countries in energy savings as well as pre-fabrication and pre-assembling of all
certificates that can be monetized to reduce the components this leads to a reduction in costs and
upfront costs needed for the retrofit. a much faster completion of the works, limiting the
disruption to the occupants.
50
Roadmap to Renovation Wave, European Union
51
PRI (2018) Impact Investing Market Map, and UNEPFI (2018) Positive
Impact Investment in Real Estate Discussion Paper

Investors are increasingly attracted by green or Importantly, any scale up in financing solutions
SDG-linked financing, whether it is for residential or will need to address homeowners of lesser credit
industrial, or other investments, targeting both market standing. Hence the need to further engage with
returns and measurable impacts. The EU taxonomy public administrations and find synergies, explore
as well as other similar frameworks in other regions public-private partnership models where the public
have significantly raised the bar as to what may be sector and/or philanthropic capital can be mobilized to
considered “green”, without the risk of being accused of de-risk lending to less credit worthy customers.
greenwashing.
It’s important to note that a complete cost-
Financial institutions already finance renovation benefits analysis should demonstrate that this is a
at multiple levels (social landlords, homeowners, profitable investment for public authorities since,
solutions providers…) and have started to aggregate as demonstrated above, the multiple benefits and
these loans in vehicles designed for placement to positive value and risk implications of energy efficiency
long term investors. For example, in the US, thanks create savings in the public budget that should
to an innovative set of administrative rules (R-PACE), compensate for any losses resulting from such de-
energy efficiency solutions providers were offered the risking commitments.
possibility to extend financing to homeowners for their
energy efficiency renovation, such financing being To demonstrate this, it is essential that social
repaid via the same process as property taxes (thereby and environmental impacts resulting from home
decreasing the likelihood of payment default) and with renovations are tracked and given a monetary value.
a priority order on the underlying security.
The energy efficiency renovation loan is also “attached”

to the property: if the homeowner becomes insolvent
and the house is sold, the new owner (who benefits
from a fully/partly renovated house) has to accept the
liability to repay the energy efficiency repayment to
the solution provider. Such a beneficial scheme has
enabled a massive scaleup of energy efficiency retro
fits (In the US, the R-PACE program has lent $7.7 Bn for
energy efficient renovations, as at Dec 202152)
52
Pacenation.org

Financing Industry decarbonization: • Short-term focus: Industrial companies often
prioritize short-term financial goals and may
overlook the long-term benefits of energy efficiency
Obstacles to energy efficient renovations at industrial renovations. Without a clear understanding of the
companies: potential cost savings and environmental as well
as social benefits (e.g. improved staff retention
• Cost: Implementing energy-efficient technologies due to healthier workplace and/or pride to work
and upgrading infrastructure may require for a “greener” employer), organizations may not
substantial investments for an industrial company, prioritize these initiatives.
especially heavy industry. Chief Financial Officers
will typically compare the expected ROI from such • To overcome these hurdles, it is crucial for industrial
investments to other core business development companies to develop a comprehensive energy
investments that typically show better returns, management strategy, conduct energy audits
at least in the short term. Moreover, certain to identify potential savings, educate staff about
manufacturing processes may rely on high- energy efficiency and other co-benefits, and seek
energy consumption equipment or have inherent partnerships with experts in the field. Additionally,
inefficiencies that are difficult to mitigate: the few supportive policies, financial incentives, and technical
solutions that exist will likely be very expensive assistance from government agencies can be critical
with a long payout. catalysts to incentivize and/or facilitate energy
efficiency renovations.
• Lack of awareness: Many industrial companies
may not be fully aware of the potential benefits of As explained above, recent years have seen a significant
energy efficiency renovations and/or the available increase in commitments from companies to reduce
technologies and solutions. Without proper their carbon footprint, and a need to reduce their
knowledge and understanding, they may not energy bills as a result of rising energy prices. Such a
prioritize energy efficiency or allocate resources rise indemand has led to increased innovation in the
towards implementing such measures. technical and financial solutions offered to carbon
intensive companies, as well as the emergence of new
• Complex industrial processes: Industrial players in the market called energy service companies
operations often involve complex processes (ESCOs) which design, implement, and finance energy
and specialized equipment. Retrofitting existing efficiency upgrades under Energy Service Performance
systems to improve energy efficiency can be Contracts (ESPCs). ESPCs are agreements between an
challenging and will require careful planning to industrial company and an ESCO, where the ESCO funds
avoid disruption of production or quality: such and installs the required CAPEX and software and is then
disruption is a material hurdle to decision-making repaid through the energy cost savings generated by
towards energy efficiency retrofits. the project over a specified period. ESPCs provide an
attractive option for industrial companies as they can
• Regulatory and policy barriers: Despite many implement energy efficiency measures without having
subsidies dedicated to energy efficiency, the to pay high upfront capital investments.
regulatory environment can sometimes also hinder
energy efficiency renovations. Companies may If a company has the ability to issue more debt and
face challenges related to compliance with energy purchase the equipment needed, such debt will in
efficiency standards, obtaining permits, or navigating most cases qualify for a “green” label, hence it can
complex regulatory frameworks. issue green bonds or green loans to raise capital for
energy efficiency renovations. While not necessarily
• Financing options: Taking on additional debt to cheaper than normal corporate bonds or loans, these
fund significant energy efficiency renovations might green debt instruments attract investors interested
be a key hurdle for CapEx intensive companies in supporting sustainable initiatives, and provide
already significantly leveraged. High interest rates, companies with an enlarged investor base composed
as in the current environment, can also affect the of “buy and hold” investors that will provide more
overall ROI, whether funding is provided by the stability than other types of investors in case of
corporate or by the solution provider. conjunctural market fluctuations.

Malu Paiva
Sustainability Executive Vice President,
Vale Foundation
I would say a big part of our challenge regarding

emissions could be solved if we looked at whether
what already exists can be improved, rather than just
looking at what needs to be invented. That needs a lot of
investment and it takes time to develop new technologies.
With energy efficiency you can get quicker, impactful

results. So don’t only go for what gets the most attention –
also go for what you can improve.

Utility Energy Efficiency Programs are another Energy Savings certificates can be another source
funding option for industrial companies: many utility of financing for energy efficiency investments. For
companies have created an in-house ESCO and offer example in France, utilities or other entities responsible
energy efficiency programs and incentives to their for supplying energy (electricity, gas, heat, etc.) to
industrial customers, as an additional service on top end-users companies are required to meet specific
of providing power or other energy supply. These energy savings targets, expressed in terms of energy
programs may include rebates, grants, or low-interest consumption reductions, over a defined period.
loans to encourage energy efficiency upgrades. To reachtheir targets, they can undertake energy
Industrial companies can take advantage of these efficiency projects directly by assisting their clients in
offerings to reduce the financial burden of their making these investments or, more commonly, they
renovation projects. Amongst them, On-Bill Financing can buy Energy Savings certificates (CEE in French)
(OBF) is a financing mechanism where the cost of from other entities that have implemented energy-
energy efficiency renovations is added to the utility saving actions or projects. Such obligations and related
bill of the industrial company. The company repays the instruments to monetize energy savings are an efficient
investment over time through the savings generated catalyst to incentivize all actors to make energy
by the energy efficiency measures. OBF allows efficiency investments. They also help the country to
industrial customers to spread the cost of renovations meet its nationally determined contribution (NDCs)
over an extended period, making it more manageable. obligations as part of the Paris Agreement, but need to
be directed towards measures that offer the greatest
potential for decarbonization.

Green Investment Banks are another type of catalyst The situation in emerging markets and developing
that governments or regions can create to provide economies is often less advanced than in developed
dedicated financing for energy efficiency projects. countries. However, there is a vibrant ecosystem of
These institutions offer low-interest loans or grants to start-ups and larger energy companies that offer
support industrial companies in implementing energy decarbonization solutions “as a service” to local SMEs
efficiency renovations. or industrial companies looking to reduce their
energy bills and switch from fossil fuel to solar power
Another funding source dedicated to these on their premises or nearby. Beyond the incentive
investments are Energy Efficiency Funds whose to make energy costs savings and reduce their GHG
number have also increased recently. These funds are emissions, these companies’ investment decisions are
typically managed by private asset managers but are often also driven by the lack of reliability of the local
raising funds from both public and private investor power grid which creates unplanned disruption to
sources. They typically provide longer term financial their business processes.
support for energy efficiency projects compared to
commercial banks, thanks to their “buy and hold”
Limited Partnership. Examples include Susi Partners, Conclusion
Amber, Blue Path, etc.
The momentum has never been stronger for
Last, but not least, banks have a full suite of financing homeowners and companies to invest in the energy
solutions for industrial companies and/or their efficiency renovation of their buildings and production
Energy Services providers. For small size investments, tools: Net zero pledges, increased energy prices,
the equipment or technologies needed for energy the search for a sustainable development path that
efficiency renovations can be leased instead of meets all stakeholders’ expectations, etc. These
purchased outright. Lease financing spreads the cost common drivers face common hurdles: multiple
over a period, allowing companies to benefit from the small scale investments must be coordinated to
energy savings generated by the upgrades without achieve an efficient renovation, lack of knowledge
having to fund upfront capital. Leasing solutions can of existing technical and financing solutions,
also be offered to portfolios of assets of different complexity of multiple funding sources (subsidies,
nature provided they are installed and managed savings certificates, loans, performance contracts…),
by the same entity (an ESCO for example). The debt delays and disruptions generated by the retrofitting,
related to the leased asset or energy performance underestimation of the co-benefits derived from
contract can be deconsolidated from the industrial these investments (on top of the reduced costs and
company’s balance sheet. In some cases, subject to pollution) leading to an underestimation of the actual
specific contractual clauses in ESPCs, the assets and ROI (including non-monetized impacts) of these
related debt can also be deconsolidated from the investments, etc.
balance sheet of the ESCO, thereby enabling such
a company to continue developing more business Technical and financial solutions exist, however they
without the need to raise more equity. need to be improved in order to offer a seamless “one
stop shop” offer to end-users where no - or insignificant
The availability and suitability of financing solutions - upfront cost is required and where there is a high level
can vary depending on the country, region, and of certainty about the speed, quality and efficiency
specific circumstances. Industrial companies should of the work done. To achieve such an integration of
explore local programs, incentives, and financial solutions and deliver a positive user experience, we
institutions to identify the most appropriate financing can point to two powerful catalysts: digitalization
options for their energy efficiency renovation projects. and partnerships. Digitalization will encourage faster
Increasingly local or international consultants deployment and rigorous monitoring, as well as the
specialize in advising large companies in the design opportunity to standardize and aggregate assets for
and implementation of their decarbonization strategy, improved financing costs thanks to diversification.
including with the selection of the solutions providers Partnerships are essential to mobilize the best skill sets
and most efficient financing solutions. at all stages of these complex multi-asset investment
programs, in order to provide the best outcomes and
deliver impacts in multiple SDGs.

Jobs Jobs breakdown for energy efficiency Buildings Industry
Construction 20% 10%
Energy Efficiency as major job HVAC, Cooling, Refrigeration 25% 10%
creation engine Lighting 10% 5%

Machinery NA 30%
Digital 15% 20%
The energy efficiency industry today employs around
11 million people across the world53, with 2/3rd of Others 30% 25%
them in mature economies. This compares to around
65 million jobs in the energy sector as a whole54. Energy Efficiency jobs, per type
Close to half of these jobs are in the building market,

with the rest in a variety of industrial sectors. Energy The International Energy Agency estimates that 15
efficiency thus concerns all sectors of activity and, as Full Time Equivalent (FTE) are created for every US$1
was shown in the previous chapter, offers significant million invested in buildings, and around 10 FTE/$US1
opportunities across the entire economy. million in industry56. This estimate, though prey
to uncertainty, is generally widely acknowledged,
notably by the scientific literature. Brown et al.
estimate that 12.75 FTE are created for every US$1
million invested, a consistent average with the figures
from the International Energy Agency.
They also explain that this ratio can be further broken

down into direct job creations (e.g., installers, service
providers), indirect job creations (e.g., manufacturing
activities) and induced job creations (e.g., jobs that
are created from rising consumption levels and
increased wages). On average, every US$1 million
invested in energy efficiency leads to the creation of
4 direct jobs and 3.5 indirect jobs - and around 5 jobs
are induced as a result.
As can be seen above, the effects of energy

investment are felt across a broad array of sectors and
have material impacts on the economy, which are
not limited to directly related occupations. It is truly a
Energy Efficiency jobs, per region
system change.
Finally, investing in energy efficiency also creates

Energy efficiency also creates a variety of jobs more jobs (in more sectors and across more functions)
in a multitude of functions. According to the than investing in fossil fuels. Garrett-Peltier57 reviewed
International Energy Agency, about 40% of these the difference in job creation between both sectors
jobs are related to construction (including service) for direct and indirect jobs (induced jobs were
activities, another 20% in manufacturing (e.g., excluded).
efficient appliances, smart controls, etc.) and the
rest in a variety of other supporting activities (e.g.,
program management, architecture and engineering,
financing, etc.). Brown et al.55 offer a more detailed Jobs per activity Direct Indirect Induced Total
breakdown, using a slightly different approach yet Energy Efficiency 4.6 3.1 Not assessed 7.7
showing a consistent split overall. Fossil Fuels 1 1.7 Not assessed 2.7
Energy Efficiency jobs vs Fossil Fuel jobs

53
OECD/IEA, 2022
54
All data is from 2019. Since then, the figure is closer to 70 million, with
a 5-7% annual growth.
55
Brown et al., 2020
56
OECD/IEA, 2020
57
Garrett-Peltier, 2017

She concluded, as the table above suggests, that 5 Climate change has significant implications for the
more jobs (or 3 times as many) are created for every health and futures of children and young people,
US$1 million that is switched from fossil fuels to yet they have little power to limit its harm, making
energy efficiency, not accounting for other positive them vulnerable to increased climate anxiety. It is,
effects such as economic savings and associated therefore, not surprising to see them taking to the
induced job creations. public stage to express their fears and their desire for
structural reform.
This is what Costantini et al.58 also confirmed in a
detailed review for the European Union, where they In recent years, nations, businesses, and individuals
assessed that energy efficiency investments had have led many movements that involve younger
a positive impact on net employment, hence people, inviting them to take action to address the
economic growth. environmental challenges the world is facing.
To conclude, energy efficiency is thus not only a

foundational pillar of decarbonization, but also a Energy Efficient Youth
major job creation engine and a strong enabler of
economic growth.
When we talk about having a sustainable future,
energy efficiency is a very important component
that is not stressed as much as sustainability is.
Youth and Sustainability Generally, energy efficiency consists of using
different technologies, behaviors, or practices that
Over the past decade, the term ‘sustainability’ has reduce energy consumption and energy waste
become more familiar within the youth demographic while providing the same amount of output, and
than any other time before. A 2022 survey by Deloitte productivity to reduce the strain on the planet.
found that 90% of Gen Z respondents said that It is not only important because it protects the
sustainability is important to them, and 83% said that environment and helps in reducing greenhouse gases
they are willing to make changes to their lifestyle to which contribute to climate change and air quality,
reduce their environmental impact59. Young people but it also reduces costs and can save money on
are interested in sustainability - from recycling and energy bills.
the circular economy, to technical innovations in the
world of renewables. Some world organizations have directed their
attention towards engaging young people in
At the same time, qualitative studies60 (source)have the energy efficiency narrative. According to the
shown how 16 to 25 year olds are worried specifically World Energy Outlook report, a 2022 survey by the
about climate change (59% very or extremely worried, International Energy Agency (IEA) found that 73% of
84% at least moderately worried). Over 50% felt young people aged 18-24 are willing to take action
sad, anxious, angry, powerless, helpless, and guilty. to reduce their energy consumption61.The World
Economic Forum found that 65% of young people are
interested in learning more about energy efficiency,
according to the Global Risk Report survey conducted
in 202362.
A 2021 study by the European Commission found that

young people are more likely to engage in energy-
58
Costantini et al., 2018 efficient behaviors, such as turning off lights when they
59
Deloitte 2023 Gen Z and Millenial survey - https://www.deloitte.com/ leave a room and unplugging electronics when they
global/en/issues/work/content/genzmillennialsurvey.html are not in use63.
60
The Lancet – Climate anxiety in children and young people https://
www.thelancet.com/journals/lanplh/article/PIIS2542-5196(21)00278-
3/fulltext
61
World Energy Outlook 2022 https://www.iea.org/reports/world-
energy-outlook-2022
62
World Economic Forum – The Global Risk report 2023 (18th Edition)
https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf
63
Young energy savers: Exploring the role of parents, peers, media and
schools in saving energy among children in Belgium https://www.
sciencedirect.com/science/article/pii/S2214629619306334

Conclusion Energy efficiency must be treated with equal
importance as renewable energy sources in order to
Improving public knowledge of energy efficiency maximize their combined advantages and realize its
is essential to creating a sustainable future. Energy full potential. Furthermore, it is essential to engage
efficiency sometimes gets overlooked in conversations young people in energy efficiency projects by giving
and regulations related to sustainability, despite its them the necessary tools. Incorporating the younger
many advantages. We must recognize the importance generation’s creativity, enthusiasm, and vision
of sustainability and give it more emphasis if we want can forge lasting change. Supportive measures,
to establish a comprehensive approach to the issue. including policies, incentives, and educational
integration, are essential in creating a robust energy
Energy efficiency plays a critical role in environmental efficiency ecosystem.
protection, reducing greenhouse gas emissions, and
battling climate change in addition to conserving Through collaboration and shared knowledge, we can
resources. Additionally, it offers significant economic pave the path to a truly sustainable future, conserving
benefits, such as cost reductions, increased resources, reducing costs, and preserving the planet for
competitiveness, and sustained growth. generations to come.

Appendices Samwoh’s “Smart Hub,” a pioneering
achievement as Singapore’s first
Appendix 1: Case studies energy-positive industrial building
Local community of residents in Nice, Samwoh’s ambitious goal of centralizing its operations
in Singapore and unifying facilities scattered across five
Côte d’A zur metropolitan area to locations, led to a ground-breaking partnership with
reduce energy demand during peak Schneider Electric. Their mission was clear: achieve
efficient energy usage and future-proof operations for
consumption periods sustainable growth. The result of this collaboration is
Samwoh’s “Smart Hub,” a pioneering achievement as
Between 2014 and 2016, EDF conducted an Singapore’s first energy-positive industrial building,
experiment in partnership with the Nice Côte d’Azur generating more energy than it consumes.
metropolitan area and the CSTB to set up a community
of residents whose mission was to reduce energy Schneider Electric’s solutions, including EcoStruxure
demand during peak consumption periods (6pm to Building Operation and various connected products
8pm). Using a dedicated application, 140 households like Smart Panels and PowerLogic™ meters, have
equipped with smart meters were encouraged to delivered impressive outcomes. Samwoh has achieved
reduce their electricity consumption between 6pm and up to 50% savings in utility costs through efficient
8pm for 25 days between November 2015 and June energy usage, with at least 25% of the electricity
2016. The participants (i) received a warning the day generated by the facility’s solar panels being returned
before each consumption peak, (ii) were free to choose to the national grid. The project’s sustainability
the electrical equipment they wanted to reduce their efforts were rewarded with Singapore’s Building and
consumption, (iii) accumulated points to reward the Construction Authority’s Green Mark Platinum (Positive
savings they made and (iv) contributed to the funding Energy) certification, showcasing the success of
of a community project through these actions. Samwoh’s commitment to efficient energy usage and
future-proofing its operations.
This experiment showed that it is possible to mobilize
behavioral energy efficiency levers in a community
of households brought together using digital tools.
The participation rate in the 25 alerts launched via Integrated platform for building
the application reached 80%. For these households, management and analytics at Resorts
consumption between 6pm and 8pm fell by an average World Las Vegas
of 30% thanks to behavioral changes, particularly in
terms of cooking habits (cooking earlier or eating cold Resorts World Las Vegas, in its quest to become
meals). Support for the solidarity project was well Las Vegas’ latest mega-resort and a sustainability
received and motivated them (80%). The principle of a pioneer on the Strip, made sustainability its core
community of participants gave a collective impetus to mission from the outset. Recognizing the need for
the action and more weight to the individual gesture. a partner capable of helping them establish a new
The project was seen as concrete, giving people a benchmark for sustainable and opulent hospitality,
sense of ownership. Lastly, the local roots at regional Resorts World Las Vegas turned to Schneider
and neighborhood level were important in getting Electric’s EcoStruxure Building Operation, an
households to sign up to the project. integrated platform for building management and
analytics. This solution has not only enabled Resorts
World Las Vegas to realize impressive results, such as
a 30% reduction in energy consumption compared
to baseline figures, but has also streamlined the
monitoring of numerous data sources across their
vast facility. Additionally, it has ensured reliable
power supply in a mixed-use complex spanning over
7 million square feet while seamlessly integrating
various third-party systems, enhancing the overall
efficiency of the resort’s operations with a more
holistic approach to sustainability, bringing together
various aspects of energy management, water
conservation, and more. This collaboration has
positioned Resorts World Las Vegas as a leader in
sustainable and luxurious hospitality.

Building Management Systems (BMS) Salvador’s “Lighting our
at Takeda’s facility in Singapore Neighborhood” Program installs LED
lamps to improve economy, efficiency
Takeda, a pharmaceutical giant with a commitment
to achieving net-zero operations by 2035, faced the and security (provided by C40 Cities)
challenge of advancing their corporate sustainability
goals while improving operational resilience, business Replacing lamps with LED lighting makes the public
efficiency, and the well-being of their employees. They lighting system more efficient as they can reach 50
opted to connect with Schneider Electric, leveraging to 100 thousand hours of operation, while other
their industry expertise and extensive EcoStruxure types of lamps can only manage around 30 thousand
solutions. Takeda implemented Building Management hours. LED lighting has a luminous efficiency up to
Systems (BMS), power solutions, and automation five times higher than incandescent lights. This makes
technologies, along with cutting-edge industrial maintenance costs much lower helping the Municipal
software from AVEVA. Government decrease its energy consumption tariff.
The benefits have been substantial, with Takeda’s Simultaneously, as LED lights are more powerful at
facility in Singapore becoming the first positive lighting the streets, they also help to reinforce public
energy building in their manufacturing network safety and improve pedestrian visibility at night. In
and Singapore’s pharmaceutical industry. It boasts addition, LED luminaires are easy to control via a
an energy surplus of at least 15% generated from remote management system, reducing operating costs
renewable sources. This achievement aligns with and avoiding CO2 emissions from car trips to the poles.
Takeda’s sustainability goals and has resulted in a
safer and more comfortable work environment for According to the director of Public Lighting in Salvador,
their staff. The facility has also received the prestigious the program changed the concept of public lighting
Green Mark Platinum Positive Energy certification in the city as it promoted the democratization and
from Singapore’s Building and Construction Authority, modernization of lighting to entire neighborhoods,
setting a standard for future sites and demonstrating including some of the most peripheral neighborhoods,
tangible results in terms of energy surplus and bringing LED light to all streets and alleys, including
improved staff well-being. the installation of new poles. The program was not
started in wealthy neighborhoods, but in vulnerable
Since 2019, Salvador has been replacing its street ones, where there is usually a higher rate of problems
incandescent lights with LED lights as one of the related to violence. Public lighting brings, in addition to
initiatives within the “Lighting our Neighborhood” the quality of life, a greater sense of security for those
Program. This initiative has reached 100 of Salvador’s who walk the streets at night.
163 neighborhoods, and 75,000 poles in Salvador will
have LED lights by the end of 2020. The Public Lighting The process for replacing LED lights starts with a field
Office (DSIP), a department of the Municipal Public study conducted by DSIP teams to understand the
Order Secretariat of Salvador, leads the Program. This needs of each location. This includes the number of
initiative has many advantages in terms of light and lights and installation requirements to ensure that
energy efficiency. It reduces consumption by 50%, the whole neighborhood and its inhabitants receive
improves quality and durability, and increases the adequate public lighting. In addition, the Municipal
sense of security in neighborhoods. Government issues public notices for the purchase of
lighting fixtures through price registration to reduce
costs and be able to reach more neighborhoods.

The Global Lighthouse Network Reduce the environmental footprint of
initiative on Smart manufacturing the whole supply chain
launched by the World Economic
In the automotive industry, manufacturers are forcing
Forum their subcontractors in the mechanical engineering,
plastics, tire and paint industries to decarbonize their
The World Economic Forum64 launched the Global products. ARKEMA is offering bio-sourced plastics, while
Lighthouse Network initiative on Smart manufacturing
MICHELIN is reducing the fuel consumption of vehicles
in 2018. Since its inception, the network has grown to
using its tires by working on their manufacture and on
include 132 member sites selected by an independent
the performance of its subcontractors, to whom it offers
expert panel. This includes 29 new lighthouses in
support in terms of training and ISO 50001 certification.
2022 and the designation of seven sustainability
lighthouses. The network spans industry sectors from
consumer-packaged goods, process industries and In packaging, companies such as SMURFIT KAPPA, with
advanced industries, to pharmaceutical and medical its Better Planet Packaging program, aims to reduce the
products. Just as they have since the network’s amount of packaging used for products such as carton
inception, these sites have demonstrated impact packs for food and drink products.
across operational performance indicators, including
sustainability, productivity, agility, speed to market and Sectors such as roof tiles (the process requires heating
customization. and drying the tiles) are actively seeking to decarbonize
their processes in order to remain environmentally
Some examples of smart manufacturing impact into competitive with products such as slate.
sustainability are presented below. This reduction in the environmental footprint is leading
to different strategies among manufacturers in the
Finally, these factors lead manufacturers not only to same sector: anticipate and differentiate, follow or wait.
reduce the environmental footprint of their plants The L’Oréal group (cosmetics) aims to reduce its CO2
and products, but also to ask their subcontractors and emissions, water consumption and waste by 60% over
suppliers to reduce theirs. the period 2005-2020.
64
World Economic Forum, 2022, 2023

Over the period 2015-2025, the BEL group (industrial
cheese-making) aims to divide its water consumption
by 4, reduce its energy consumption by a third and use
two-thirds renewable energy. This group is very active
in this area, in particular with the support of EDF, and
sees these actions as a differentiating factor compared
with much larger competitors.
The BOSCH group (equipment manufacturer, Industry

4.0 project, one of the leaders in Germany) aims to
reduce its CO2 emissions by 20% and increase its
energy efficiency by 20% over the period 2007-2020.
The LAFARGEHOLCIM Group (Cement) aims to reduce
its CO2 emissions by 40% over the very broad period
1990-2030.
The MICHELIN group (tires) aims to reduce its

environmental footprint by 50% and its logistics CO2
emissions by 10% over the period 2005-2020, and
to support 70% of its suppliers in improving their
environmental footprint.
The SOLVAY group (Chemicals) is taking a number

of steps to reduce the environmental footprint of its
products, in particular by introducing an internal CO2
cost into its investment projects.
In April 2021, SCHNEIDER ELECTRIC launched the

Zero Carbon Project with the goal to reduce by 50%
supplier operational emissions (scope 1 and 2) by 2025.
Today, over 1,000 companies have joined the initiative.
So far, an initial survey showed that more than 70%
of suppliers engaged have not yet quantified their
GHG emissions, so a first important step is for them to
develop a robust GHG accounting tool. The initiative
provides capacity building, thought leadership,
resources and handholding to program participants
and helps them set and achieve their carbon reduction
targets. The suppliers are encouraged to quantify their
carbon emissions, adopt ambitious decarbonization
goals and deploy action plans to achieve them.
The Zero Carbon Project cultivates exchange of
best practices by a variety of live engagements and
training sessions organized on a regular basis. It
leverages expert knowledge and experiential learning
on decarbonization from Schneider to support
suppliers. Additionally a dedicated web portal has
been introduced. This portal provides a single-window
access to all thought leadership, research, training
materials, case studies, decarbonization levers, and
tools for quantification of GHG emissions. More
information on this project available here:
https://www.se.com/ww/en/about-us/sustainability/
zero-carbon-project.jsp

Brilliant Planet : flexibility and
efficiency for a carbon capture
industrial process developed in
Morocco
Brilliant Planet, an innovative company focused on low-
cost, algae-based carbon capture utilizes microalgae
grown in open-air pond-based systems to sequester
carbon on a gigaton scale, offering a cost-effective
and quantifiable method. This process can capture up
to 30 times more carbon than the equivalent forest
area, aligning with global energy and climate goals
recognized by the UN Intergovernmental Panel on
Climate Change.
After eight years of research, including trials in

Morocco, Brilliant Planet is developing a scalable
platform for global deployment. Schneider Electric’s
EcoStruxure Automation Expert, a software-centric To develop a heat pump producing heat at 120°C,
universal automation system, will be implemented by the researchers started with a commercial machine
Platinum Electrical Engineering. This solution offers operating with the fluid R134a. The developments
flexibility and efficiency for a carbon capture process involved changing the refrigerant (R245fa) and the
that requires scaling as needed, enabling cost-effective compressor lubricating oil. The condenser was also
and resource-efficient expansion for Brilliant Planet. modified. Thanks to the laboratory’s testing facilities,
Platinum Electrical Engineering’s expertise in this the performance of this heat pump has been fully
technology and recent recognition as Schneider characterized. The temperature of the heat source was
Electric’s Global EcoStruxure Partner of the Year make studied between 45°C and 80°C, and the heat pump
them an ideal system integrator for this project, produced heat between 70°C and 120°C. Over this very
showcasing the potential of trusted partnerships in wide temperature range, the COP recorded ranged
advancing sustainability and industrial automation. from 1 to 8.
Industrial high-temperature heat

pumps to improve the efficiency of
heat production
Since 2008, on the Renardières site, EDF R&D labs
have been working on the emergence of an industrial
high-temperature heat pump sector, in partnership
with equipment manufacturers. The aim of this work
is to demonstrate the feasibility and performance of
high-temperature heat pumps, using components
mastered by the sector, on an industrial scale close to
the thermal megawatt. The laboratory has two water
loops that enable the source and need for heat to be
simulated experimentally. Temperatures and flow rates
can be adjusted, enabling a wide range of situations to
be tested in terms of the energy supplied at source and
extracted when required.

Following these tests, the heat pump was installed to produce a reduced-scale 30 kW thermal model
on the Ghent district heating network. In winter, this that validates the concept. In certain configurations
network distributes heat up to 105°C, which justifies often found in industrial dryers, this heat pump can
the choice of a very high-temperature heat pump. The achieve a COP that is almost double that of a standard
source of heat, at a temperature of around 60°C, comes machine. The first industrial-scale heat pump, with
from energy recovery from cogeneration equipment. a thermal capacity of 500 kW, was designed and
The project, which is modest in size compared with the commissioned on an industrial site in April 2023. The
needs of the heating network (400 kWth), improves the drying market is very large. It accounts for around
efficiency of heat production by 2.5%. a quarter of all fuel used for energy purposes. The
heat source used for the heat pump is contained in
The PACO project is a very high-temperature heat the extraction of fumes. This contains almost 90% of
pump using water as the refrigerant. In this case, the energy supplied to the dryer. The heat produced
water was chosen as the refrigerant to achieve by the heat pump is used to heat the fresh air or
higher temperatures while maintaining excellent the products to be dried. This is a highly favorable
energy performance. In addition to its excellent situation for the integration of heat pumps, because
environmental performance, compared with the heat source and the heat requirement are part
synthetic refrigerants (no impact on the greenhouse of the same process, and are therefore concomitant.
effect or the ozone layer), water achieves very good What’s more, this kind of equipment operates for long
coefficients of performance. The technical difficulty periods of time, 8,000 hours a year, for example in
lies in compressing this fluid, which is not very drying plants in the paper industry.
dense and requires very large volumes of gas to be
compressed. This collaborative project involving
academic and industrial partners has made it possible Synergies between industrial players
to build a prototype supplying 600 kW of heat
(around 1 tonne/h of steam), demonstrating that it is in the north of France to reduce their
possible to use a source of temperature at 90°C and ecological footprint
produce heat at almost 140°C with a COP close to 5.
Since 2019, the Communauté Urbaine de Dunkerque
TRANSPAC is a transcritical heat pump designed in the north of France has been supporting the EPIFLEX
for drying operations up to 150°C. Currently at the project led by EDF R&D in partnership with Mines Paris
stage of a research project financed by ADEME, as part of a call for projects from ADEME. This project,
this technology patented by EDF has been used based on an innovative methodology, identifies

concrete solutions for energy and material synergies economically viable solutions while guaranteeing the
(water, heat, cold, CO2, H2) that make economic sense, technical feasibility of the solutions.
notably through the use of innovative processes.
The synergies identified mainly concern heating,
The project is supported by the Grand Port Maritime cooling and water, with significant potential gains:
(local port authorities), which is keen to see the
Dunkerque industrial port zone - France’s biggest CO2 1. 1.3 TWh/year of waste heat recovered
emitter - embark on a low-carbon transition in order to 2. 587,000 m3 of drinking water saved/year
ensure the long-term viability of the sites that occupy 3. 410,000 m3 of industrial water saved/year
it and attract new industries with high added value for
the region. Thanks to the EPIFLEX approach, the local
authority is in a position not only to organize synergies Increase the modal share of cycling in
between industrial players to help them collectively
reduce their ecological footprint, but also to identify the France
“missing links” that need to be convinced to set up there
to transform the waste of some into resources for others In France, since the 1980s, the modal share of cycling
and complete the virtuous circle of the circular economy. has steadily declined. It fell from 4.5% in 1982 to 2% in
2008, and stagnated nationwide until the latest surveys
The EPIFLEX approach involves several stages: in 2018. However, while the modal share of cycling is
stagnating nationwide, it is increasing in major French
5. Identifying the region’s problems and targeting the cities: in Strasbourg, the modal share of cycling rose
industrial companies most interested in setting up from 6% to 7.5% - in Rennes from 3% to 4% between
symbioses. 2000 and 2008 - in Grenoble from 2.5% to 4% between
2000 and 2010. Cycling is used mainly for commuting,
6. Solicitation of all the industrial companies in which is the main driver of its growth. Cycling is more
the area concerned to collect quantitative and prevalent for journeys to the city center, and less for
qualitative data on energy, water and materials. outward journeys.
7. Modelling industrial flows (requirements and
availability) of heat, cooling, industrial and drinking Concerning suburbs and rural areas, the trend is the
water and H2. opposite: the daily use of bicycles is increasingly
reduced and remains a leisure and sporting activity.
8. Identification of synergies by means of a technical In these areas, electrically-assisted bicycles (EABs)
and economic trade-off, comparing the investment appear to be a mobility solution that is becoming
costs associated with the gains in operating costs, more easily established in local lifestyles. Indeed, in
with the operating costs of manufacturers without 2017, the market for EABs doubled, but it’s mainly
the symbioses. in rural and suburban areas that they’ve taken root.
9. Development of a set of relevant scenarios based While bicycles are seen as an alternative to walking
on several sets of assumptions: energy costs, and public transport in urban areas, EABs are more
easily substituted for cars, with much greater distances
governance, improvement of industrial processes,
covered (8 km) than for conventional bicycles (4
deployment of a heating network, arrival of new
km). EABs are also more popular with older people,
industrial sites in the area, etc…
women and in hilly areas. The rise of active modes and
10. Seeking funding to implement the solutions chosen micromobility is one of the main trends influencing the
by the region. future of mobility.
11. Implementing practical solutions.
The year 2020-2021, with the exit of the COVID crisis,
marked a considerable boom in cycling and active
The technical and economic calculations were carried mode travel. During the spring of 2020, the number
out using PHOENIX decision-support software, of cyclists increased by 29% compared with the same
designed by EDF R&D and capitalizing on models period in 2019. This boom in cycling differs according
developed over the last 10 years in the field of energy- to the type of territory but is nonetheless very much
material integration on the scale of an industrial in evidence: in urban areas, cycling increased by
process and an area. Based on all the flows in the 29% on weekdays, compared with 14% in suburban
area and economic data, it can be used to establish areas. Every time there is a crisis, such as the public

transport strikes in winter 2019, cycling increases, only Johannesburg - Green Bonds Fill
to fall back slightly above its initial level. Regarding
the effects of the health crisis, the trend seems more Gaps in Financing Climate Projects.
sustainable. The profile of home-to-work cyclists is Provided by C40 Cities
also broadening: young people represent 45% of
cyclists after the first lockdown, compared with 35%
Johannesburg’s 2014 green city bonds scheme has
before; similarly, the health crisis has brought about
secured finance for investments in a suite of projects,
a rebalancing in the gender of cyclists (now 50% are
mitigating climate change and creating a more
women, compared with 34% in 2019); moreover, the
resilient city.
profile of cyclists is changing geographically, with 29%
now living in the suburbs, compared with 22% before
Cities across the world are experiencing difficulties
the health crisis.
in securing financing for green urban development,
resulting in unrealized projects. Green bonds
What about sustainability for 2030? The French
have helped Johannesburg overcome this barrier
government has set a target of 9% modal share for
by providing access to additional funding and
bicycles by 2030. According to an ADEME survey
tapping into a new base of socially responsible
carried out prior to the health crisis, this target is
investors. According to the World Bank, investors are
achievable if major investments are made in all local
increasingly looking to green bonds, with investments
authorities to complete the territorial network by
in these programs tripling to $35 billion between
creating 100,000 km of cycle paths within 10 years.
2013 and 2014.
Cycling is directly correlated with the availability of
dedicated infrastructure. Without major changes in
As the first emerging market city to issue green city
public policy, current trends in cycling suggest a modal
bonds, Johannesburg is a front-runner in finding
share of 3.5% in 2030.
innovative funding sources for climate action. The $143
million worth of green bonds sold in 2014 fill gaps
in much-needed development finance for projects
Energiesprong : a global alliance within energy, water, waste, and transportation. The
to develop simple Net Zero Energy funding will help implement the city’s climate change
mitigation strategy and accelerate projects.
Buildings
One project financed by the bonds is a 16 km extension
The European Energiesprong movement aims to of the Rea Vaya Bus Rapid Transit system, which will
develop new, ambitious and simple standards for result in 10 new stations, and 5 km of walking and
energy renovation, in order to make zero-energy cycling lanes. Due to the successful 2014 issuance, the
guaranteed renovation accessible to as many people city has become a global role model and has shared its
as possible. Created in the Netherlands in 2012 it has approach to green bonds with cities across the world.
been deployed in the UK, Germany, Italy, California Johannesburg is planning to issue new green bonds to
and Canada. In 2013, Energiesprong brokered the finance further climate action.
“Stroomversnelling” deal between Dutch building
contractors and housing associations to refurbish
111,000 homes to NZE.
Kampala, Dar es Salaam and Durban
Energiesprong relies on ambitious specifications based - Capital investment plans. Provided
on 4 key requirements:
by C40 Cities
1. Guaranteed Zero Energy for 30 years
In recent years, several cities such as Kampala, Durban
2. Work carried out very quickly and on an occupied site and Dar es Salaam, started to develop ‘Climate-Smart’
capital investment plans that look to integrate climate
3. Priority given to occupant comfort and satisfaction
mitigation and adaptation more effectively into
4. Economic equilibrium achieved on an overall cost long-term capital investment planning. As a result,
basis and without subsidies, in the long term projects are designed from the outset to provide
carbon reduction and resilience-building benefits
to the municipality. These plans are currently under

development by each city, but could help these cities in the process of their design and implementation,
more effectively mainstream mitigation and adaptation encouraging cities to more effectively achieve their
into their long-term development. climate change goals and avoid the need for costly
retrofits in the future. In Kampala, observers have
Kampala has been developing and implementing, with noticed a change in the types and designs of projects
the support of the World Bank and other agencies, a being put forward for consideration as a result of
new capital investment plan that takes into account the new processes, with mitigation and adaptation
the carbon and climate-impact risk aspects and being considered in their design. For example, greater
implications of new projects. As a result, potential consideration is being given to the location and
issues are identified while projects are still in initial vulnerability of new facilities such as hospitals and
stages of development, and preference is given to municipal buildings. Historically, only aspects such
those projects that are more resilient and low-carbon. as the cost and availability of land would have been
considered, though now, for example, the likelihood of
The city of Dar es Salaam is also implementing a similar flooding is also assessed.
system, but is at an earlier stage of development. The
city of Durban has identified the need to prioritize The creation of capital investment plans is an extremely
low-carbon and climate resilient projects in its budget important part of a city’s move towards achieving an
planning. As of December 2015, the city is exploring investment-grade credit rating. Integrating climate
the measures it can put in place in the annual budget change into the planning process will also help cities to
planning process, with the intention of implementing achieve their low-carbon, climate resilient goals more
these measures in the 2016-2017 budget cycle. cost-effectively, as potential measures are generally
cheaper and easier to build in at the design stage
A ‘climate-smart’ capital investment plan is a relatively of a project than to retroactively introduce once the
new concept and as such, its results have yet to be fully project has been built. It can also help avoid potentially
demonstrated. The main benefit it provides is to help costly mistakes by identifying potential risks early on
ensure that climate change implications (positive and e.g. building a project in a location that will become
negative) of projects will be considered extremely early increasingly vulnerable to flood risk or erosion over time.

Impactful sustainability for youth out concrete initiatives within companies to “transform
them from within”. 3 main pillars of action are used:
initiatives across the world Raising awareness and training, changing internal
practices, and advocating responsible reorientation of
Singapore: The Singapore Youth for Climate Action business models.
(SYCA) has developed many activities such as
workshops, talks, and focus group discussions, aimed South Africa: Project 90 by 2030 has been driving
at young people. This youthled initiative aims to shed change. Young South Africans are striving to reshape
light on the importance of climate action andinfluence the way people live and strengthen their relationships
policies within Singapore to ensure and advocate a with the environment. They are focused on a couple
sustainable future for the Lion city. of key areas such as energy efficiency, renewable
energy, sustainable waste management, and water
Japan: The Japan Youth Ecology League (Eco-League) conservation.
is a network of environmental activities led by young
people. It is the largest network of its kind in the UAE: The Student Energy Summit 2023 in Abu Dhabi
country, consisting of 150 groups with 2,000 members. gathered 600+ young people from all around the
Their goals include the development of networks, of world to reimagine the future of energy. It is the largest
human resources, and communication with society. youth-led conference prioritizing young people as key
Through their activities, they aim to foster a sense stakeholders in energy transition. Taking placefrom
of community among young individuals interested November 29- December 1, 2023, it empowered the
in environmental issues and create opportunities next-gen energy leaders and showcaseed the UAE’s
for sharing updates, engaging in discussions, and success story with energy transition.
organizing study groups on environmental topics.
United Kingdom: Scouts Go Solar, is a worldwide
India: The Indian Youth Climate Network (IYCN) environmental partnership between greenspace, the
has united young people and youth-oriented world scout movement, and Solafrica, in collaboration
organizations to combat climate change. With a vision with Kandersteg International Scout Centre in
to tap into the passion and energy of young people Switzerland. Its aim is to train solar ambassadors so
and connect them with policy makers, IYCN strives to they can organize solar energy activities for young
build a movement based on solutions and offers hope people globally.
for a sustainable future.
Nigeria: SE4ALL initiative in Nigeria, aims for universal
Canada: The Canadian Youth Climate Coalition (CYCC) access to modern energy services, doubling energy
combines its forces to organize actions, influence efficiency, and increasing renewable energy’s share in
government policies, and implement concrete solutions the global mix by 2030. Governments, private sectors,
at the local, provincial, federal, and international and civil society collaborate to drive transformation
levels. Through itswork in schools and communities change and promote sustainable energy action.
throughout the country, it strives to build a just and
prosperous transition towards a new Canada that
prioritizes climate stability and sustainability.
UAE: In the Middle East, and the United Arab Emirates,

The Future Sustainability Leaders (FSL) Program is a year-
long initiative designed to connect university students
and young professionals with global business leaders,
policymakers, and technology pioneers. The program
aims to provide participants with the latest sustainability
best practices, core knowledge, skills training, work
experience, and networking opportunities.
France: LES COLLECTIFS is a network of professional

citizens created to transform companies from the
inside, in particular through collectives of committed
young employees. Together, they represent 120
corporates in France and 10,000 employees. They carry

Professor Madhavi Srinivasan
Executive Director, Energy Research Institute
at Nanyang Technology, Singapore
I love the phrase “We do not inherit Earth from

our ancestors, but we just borrow it from our next
generation”. And for the next generation, it is their world,
and they are very, very passionate about it.
Students are excited about the challenge. As a generation,

they’re growing up hearing about sustainability, climate
change and, for them, it’s a very natural thing to do - to
find solutions. It’s not something that they want to put off.
It’s something that’s part of them, is the way I see it. I’ve
had many students ask why me can’t we put in more light
sensors, or can’t we time them better? I find that they are
the ones who go to the next level to say, hey, why can’t we
do this? Let’s do more of this. Students are pushing this a lot
more than other generations. I think students in general are
very sustainability conscious.

Private Sector Engagement: Schneider Selected teams usually receive mentorship from
Schneider Electric leaders to help them improve their
Electric Go Green Competition Program solution and polish proposals and presentations. Regional
winners have the opportunity to pitch their idea to a
Schneider Electric Go Green competition is a global global jury panel and compete for the chance to win a
innovation competition for students to develop 10,000 Euro cash prize, an internship at Schneider Electric,
bold ideas to accelerate sustainability in energy and go on an international trip .
management and automation. The competition is open
to undergraduate and graduate students from all over the The Schneider Electric Go Green competition is a great
world, studying in a variety of fields, including business, opportunity for students to showcase their creativity
engineering, and marketing. and innovation, and to make a real impact on the
future of sustainability. It is also a great way to learn
To participate in the competition, students form a team about the latest technologies and trends in the energy
of two to four members, choose one of the competition management and automation industry, and to network
challenges and submit their idea in the form of a business with potential employers.
case. The competition is different every year and in 2023
the challenge was:Reinventing the Future of Green
Buildings. In previous years, the competition covered
topics such as Empowering Smart and Sustainable Cities,
Decarbonizing Industrial Processes and Democratizing
Access to Energy.

Les Collectifs: Atlas des actions The Student Energy Summit 2023’s strength is its ability
to bring together young people from all over the world.
LES COLLECTIFS, a network of young professional citizens This cross-cultural collaboration allows for a wide range
created to transform companies from the inside and of perspectives on energy-related issues. The summit also
representing 10,000 young employees in France, has prioritizes youth empowerment, ensuring that young
launched a knowledge base, written by the members people have a voice in shaping future energy policies.
themselves, carried out by groups throughout France.
By contrast, we notice that Eco-League’s strength lies in its
The fact sheet provides “instructions for use”, while the localized, not international impact. By focusing primarily
comments provide individual feedback. Every young on Japan, the initiative can concentrate its efforts on
employee willing to take action in his or her company engaging with local communities, fostering grassroots
can select a subject (actions on products and services, environmental awareness, and mobilizing young people
awareness-raising and training, actions on internal towards sustainability. This national focus allows Eco-
practices, collective organization, etc..) and introduce his League to build strong connections with communities
or her constraints (budget, time allocation) and the tool and develop environmental leaders at the local level.
will generate an action sheet. More than 61 action sheets
have been registered already and a simplified printable We can see how both the Student Energy Summit 2023
version in a deck of cards format is also available. and the Japan Youth Ecology League (Eco-League)
exemplify the significance of involving young people in
environmental sustainability efforts. While the summit
focuses on global energy challenges and collaboration,
Community & Academia Engagement: Eco-League concentrates on fostering ecological
Student Energy Summit 2023 & Japan initiatives within Japan.
Youth Ecology League The Summit and the Eco-League are excellent
examples of how great initiatives from around the
Having taken a quick look at different initiatives focused
world each have their individual strengths which,
both on sustainability and energy efficiency, let’s compare
when combined, produce the best results and have
two of them: The Japan Youth Ecology league (Eco-
the greatest possible impact. Collaboration and the
League) and the Student Energy Summit 2023.
exchange of proven models can open the door for
more global, comprehensive strategies for youth-
Both initiatives share common ground in their emphasis
led environmental sustainability initiatives. These
on youth involvement, and mainly aim to empower the
efforts may encourage transformative acts and build a
young generation to play an active role in shaping a
greener, more sustainable world for future generations
sustainable future. To add to that, both share a goal of
by combining their distinct capabilities.
promoting and advocating for sustainability.

Appendix 2: Jobs descriptions
Jobs with Impact
As any other economic activity, energy efficiency will

benefit from and be transformed by the rise of digital
technologies. The jobs of tomorrow are unlikely to
resemble those of today. We suggest here, as a thought
experiment, what some future jobs could look like.
It is probably worth acknowledging here that none of

these jobs are distant science fiction. In fact, most of
them already exist in some form, and as technology
development accelerates, they will likely be the new jobs
of the decades to come.
Job Description 2 –
Job Description 1 – the Connected Energy Efficiency
the Digital Energy Manager Contractor
The Digital Energy Manager plays a crucial The Connected Energy Efficiency Contractor
role in ensuring both site productivity and executes integrated renovation projects in
occupants’ well-being. households. She/He is responsible for the
quality of the delivery as well as meeting time
The mission of the Digital Energy Manager is commitments and overall customer satisfaction.
to manage all energy-related activities on a
given building or industrial site. This includes The Connected Energy Efficiency Contractor is
optimizing energy demand depending on in charge of deploying, within one retrofit, all
weather-related and occupancy conditions, but the upgrades of a specific project, including the
also optimizing the use of alternative energy installation of new heating systems, distributed
resources, such as distributed generation, generation and storage, new electric appliances
energy storage systems and electric vehicles, and digital controls within a home.
in coordination with the utility, and in case of
emergency situations. She/He relies on the company’s integrated
digital project management tool, as well
The Digital Energy Manager relies on an as portable 3D-manufacturing machines
integrated digital suite of tools to interact in to perform necessary manufacturing
real-time with the energy system on site, as well operations on site. The Connected Energy
as AI-aided APIs to develop routines to further Efficiency Contractor also works in real-time
optimize building performance. synchronization with offsite support through
our augmented reality platform.
She/He reports to the site manager.
Education: no college degree needed.
Education: Bachelor of Science, specialization in Professional training in energy and electrical
energy systems or computer sciences. installation services.

Job Description 3 – Job Description 4 –
the Digital House Builder the Sustainability Architect
The Digital House Builder explores new building The Sustainability Architect is responsible for
designs and smart retrofits to minimize the overseeing new commercial building designs for
environmental (and carbon) footprint of the company.
buildings. She/he uses AI and advanced
simulation capabilities to better design, The role involves driving the design process of a
leverage advanced material toolboxes, etc. new building construction in a collaborative way
with the customer. She/He uses our collaborative
The Digital House Builder is the next AI design platform.
generation of house builder. The target is to
deliver new housing services (be they entirely The mission of the Sustainability Architect is to
new housing or upgrades) within an average meet customer expectations while ensuring
of less than four weekse. the construction is zero-carbon with a minimal
environmental footprint. Our AI design platform
She/He leverages our AI-aided housing design helps to run hundreds of simulations by day to
tool to provide design services to the customer proactively combine customer expectations
upfront and adjust the scope of the project. She/ with environmental constraints, leveraging
He then oversees the full construction process better physical layouts, more efficient structural
with our machine learning additive construction approaches and new materials and energy
machine. She/He is responsible for the timely and resources.
safe execution of works on site, and the final site
acceptance by the customer. Education: Bachelor of Arts, Architectural design
Education: no college degree needed.

Professional training in construction required.
Job Description 5 –
the Digital Supply Chain leader
The Digital Supply Chain leader plays a crucial role

in optimizing supply chain flows for the company.
She/He uses our digital traceability platform

which provides a real-time overview of all material
flows across the company, inward from suppliers
and outward to customers.
Her/His mission is to optimize supply chains

within a given area of service. Aided by the digital
traceability platform, the Digital Supply Chain
leader primarily monitors daily operations, but is
also responsible for developing alternative routes
to cope with disruption risks, as well to optimize
these flows to increase speed and reduce costs.
The Digital Supply Chain leader reports to the

Director of Supply Chains.
Education: Bachelor of Science, Engineering

References
Costantini, V., Crespi, F., & Paglialunga, E. (2018). The
employment impact of private and public actions for
Arbib, J., and Seba T. (2017). Rethinking Transportation energy efficiency: Evidence from European industries.
2020–2030: The Disruption of Transportation and the Energy Policy, 119, 250-267. https://doi.org/https://doi.
Collapse of the Internal-Combustion Vehicle and Oil org/10.1016/j.enpol.2018.04.035
Industries. A RethinkX Sector Disruption Report, May.
https://www.rethinkx.com/transportation. Creutzig, F., Callaghan, M., Ramakrishnan, A., Javaid, A.,
Niamir, L., Minx, J., Müller-Hansen, F., Sovacool, B., Afroz, Z.,
Ayres, R. U. (2001). The minimum complexity of Andor, M., Antal, M., Court, V., Das, N., Díaz-José, J., Döbbe,
endogenous growth models:: the role of physical resource F., Figueroa, M. J., Gouldson, A., Haberl, H., Hook, A., . . .
flows. Energy, 26(9), 817-838. https://doi.org/https://doi. Wilson, C. (2021). Reviewing the scope and thematic focus
org/10.1016/S0360-5442(01)00031-7 of 100 000 publications on energy consumption, services
and social aspects of climate change: a big data approach
Ayres, R. U., & Warr, B. (2005). Accounting for growth: the to demand-side mitigation*. Environmental Research
role of physical work. Structural Change and Economic Letters, 16(3). https://doi.org/10.1088/1748-9326/abd78b
Dynamics, 16(2), 181-209. https://doi.org/10.1016/j.
strueco.2003.10.003 Creutzig, F., Franzen, M., Moeckel, R., Heinrichs, D., Nagel,
K., Nieland, S., & Weisz, H. (2019). Leveraging digitalization
Beyond Zero Emissions. (2018). Zero Carbon Industry Plan. for sustainability in urban transport. Global Sustainability,
Electrifying Industry. Melbourne: Beyond Zero Emissions. 2. https://doi.org/10.1017/sus.2019.11
https://bze.org.au/wp-content/uploads/2020/12/
electrifying-industry-bze-report-2018.pdf. Creutzig, F., Niamir, L., Bai, X., Callaghan, M., Cullen, J.,
Díaz-José, J., Figueroa, M., Grubler, A., Lamb, W. F., Leip, A.,
BloombergNEF (2022). New Energy Outlook. Masanet, E., Mata, É., Mattauch, L., Minx, J. C., Mirasgedis,
Accessed: November 2022. https://about.bnef.com/ S., Mulugetta, Y., Nugroho, S. B., Pathak, M., Perkins, P., . . .
new-energy-outlook/ Ürge-Vorsatz, D. (2021). Demand-side solutions to climate
change mitigation consistent with high levels of well-
BloombergNEF (2023). Long-Term Electric Vehicle Outlook being. Nature Climate Change, 12(1), 36-46. https://doi.
2023. https://www.bnef.com/flagships/ev-outlook org/10.1038/s41558-021-01219-y
BPIE (2022). Putting a stop to energy waste: How building Creutzig, F., Roy, J., Lamb, W. F., Azevedo, I. M. L., Bruine
insulation can reduce fossil fuel imports and boost EU de Bruin, W., Dalkmann, H., Edelenbosch, O. Y., Geels, F.
energy security. Accessed: March 2023. https://www.bpie. W., Grubler, A., Hepburn, C., Hertwich, E. G., Khosla, R.,
eu/publication/putting-a-stop-to-energy-waste-how- Mattauch, L., Minx, J. C., Ramakrishnan, A., Rao, N. D.,
building-insulation-and-reduce-fossil-fuel-imports-and- Steinberger, J. K., Tavoni, M., Ürge-Vorsatz, D., & Weber, E.
boost-eu-energy-security-2/ U. (2018). Towards demand-side solutions for mitigating
climate change. Nature Climate Change, 8(4), 260-263.
Brockway, P. E., Sorrell, S., Semieniuk, G., Heun, M. K., https://doi.org/10.1038/s41558-018-0121-1
& Court, V. (2021). Energy efficiency and economy-
wide rebound effects: A review of the evidence and its Enerdata (2021). Evolution of households energy
implications. Renewable and Sustainable Energy Reviews, consumption patterns across the EU. Accessed: May
141. https://doi.org/10.1016/j.rser.2021.110781 2022. https://www.enerdata.net/publications/executive-
briefing/households-energy-efficiency.html
Brown, M. A., Soni, A., & Li, Y. (2020). Estimating
employment from energy-efficiency investments. Energy Star (n.d.). Methodology for Estimated Energy
MethodsX, 7, 100955. https://doi.org/https://doi. Savings from Cost-Effective Air Sealing and Insulating.
org/10.1016/j.mex.2020.100955 Accessed: January 2023. https://www.energystar.gov/
saveathome/seal_insulate/methodology
Climate Watch (2023), managed by the World Resources
Institute. Data Explorer. H istorical Emissions. Accessed: Energy Transitions Commission (2020). Making Mission
January 2023. https://www.climatewatchdata.org/data- Possible, delivering a net-zero economy. Accessed:
explorer/historical-emissions November 2020. https://www.energy-transitions.org/
publications/

Foxon, T. J. (2011). A coevolutionary framework for © OECD/IEA (2011). Energy-Efficiency Policy
analysing a transition to a sustainable low carbon Opportunities for Electric Motor-Driven Systems.
economy. Ecological Economics, 70(12), 2258- Accessed: January 2017. https://iea.blob.core.windows.
2267. https://doi.org/https://doi.org/10.1016/j. net/assets/d69b2a76-feb9-4a74-a921-2490a8fefcdf/
ecolecon.2011.07.014 EE_for_ElectricSystems.pdf
Garrett-Peltier, H. (2017). Green versus brown: Comparing ©OECD/IEA (2012). Building Shell and Thermal Insulation.
the employment impacts of energy efficiency, renewable Energy Technology Systems Analysis Programme.
energy, and fossil fuels using an input-output model. Accessed: January 2015. https://iea-etsap.org/E-TechDS/
Economic Modelling, 61, 439-447. https://doi.org/https:// PDF/R01_Building%20shell-thermal%20insulation%20
doi.org/10.1016/j.econmod.2016.11.012. https://doi.org/ FINAL_GSOK.pdf
https://doi.org/10.1016/j.econmod.2016.11.012
© OECD/IEA (2017). World Energy Outlook. Accessed:
IPCC (2014). Climate Change 2014: Synthesis Report. January 2018. https://www.iea.org/reports/world-energy-
Contribution of Working Groups I, II and III to the Fifth outlook-2017
Assessment Report of the Intergovernmental Panel on
Climate Change [Core Writing Team, R.K. Pachauri and L.A. © OECD/IEA (2017b). Digitalization and Energy. Accessed:
Meyer (eds.)]. IPCC, Geneva, Switzerland, 151 pp. June 2019. https://www.iea.org/reports/digitalisation-
and-energy
IPCC (2021, 2022). 6th assessment report. Working groups
I, II and III. Accessed: June 2022. https://www.ipcc.ch/ ©OECD/IEA. (2020). Energy efficiency jobs and the
assessment-report/ar6/ recovery. (c) International Energy Agency. https://www.
iea.org/reports/energy-efficiency-2020/energy-efficiency-
IRENA (2023). World Energy Transitions Outlook 2023. jobs-and-the-recovery
1.5 degrees pathway. International Renewable Energy
Agency. https://www.irena.org/Publications/2023/Jun/ © OECD/IEA. (2020). IronEnergy efficiency jobs and
World-Energy-Transitions-Outlook-2023 Steel Technology Roadmap. Accessed: January 2021.the
recovery. (c) International Energy Agency. https://www.
Jefferson, M. (2014). Closing the gap between energy iea.org/reports/ironenergy-efficiency-2020/energy-
research and modelling, the social sciences, and modern efficiency-jobs-and-steel-technology-roadmapthe-
realities. Energy Research & Social Science, 4, 42-52. recovery
https://doi.org/10.1016/j.erss.2014.08.006
© OECD/IEA (2021). World Energy Outlook. Accessed:
LLNL. (2022). Lawrence Livermore National January 2022. https://www.iea.org/reports/world-energy-
Laboratory. Energy Flow Charts: Charting the Complex outlook-2021
Relationships among Energy, Water, and Carbon. .
https://flowcharts.llnl.gov/ © OECD/IEA (2021b). Net Zero Emissions Scenario.
Accessed: January 2022. https://www.iea.org/reports/net-
Motherway B. (2019). Energy efficiency is the first fuel, zero-by-2050
and demand for it needs to grow. International Energy
Agency. https://www.iea.org/commentaries/energy- ©OECD/IEA (2022). Cement Subsector. Accessed: February
efficiency-is-the-first-fuel-and-demand-for-it-needs- 2023. https://www.iea.org/reports/cement
to-grow
© OECD/IEA. (2022). World Energy Employment. (c)
Nadel_et_al. (2019). Nadel Steven, Ungar Lowell. Halfway International Energy Agency. https://www.iea.org/
There: Energy Efficiency Can Cut Energy Use and reports/world-energy-employment
Greenhouse Gas Emissions in Half by 2050. https://www.
aceee.org/research-report/u1907 © OECD/IEA (2022b). Energy Efficiency Report. Accessed:
Novmber 2022. https://www.iea.org/reports/energy-
©OECD/IA (2007). Tracking Industrial Energy Efficiency efficiency-2022 Schneider Electric (2021). Back to 2050:
and CO2 Emissions. Energy Indicators. Report, June. 1.5 is more feasible than we think. Petit V., Minier V.,
Paris: International Energy Agency. https://iea.blob. Koenig E., Bchini E., Carraz E., Cail S., Charriau P. Schneider
core.windows.net/assets/84e31bc6-6ebd-4026-9060- ElectricTM Sustainability Research Institute. Accessed:
3c9ae64e4c11/tracking_emissions.pdf November 2021. https://www.se.com/ww/en/insights/
sustainability/sustainability-research-institute/back-
to-2050.jsp?stream=sustainability-research-institute

Schneider Electric (2021b). Cracking the Energy Efficiency Section 2 resources
Case in Buildings. Petit V., Minier V., Obara H., Beguery P.
Schneider ElectricTM Sustainability Research Institute. Energy Efficiency - The Decade for Action (Ministerial
Accessed: November 2021. https://www.se.com/ww/en/ Briefing), IEA (June 2023) - https://www.iea.org/reports/
insights/sustainability/sustainability-research-institute/ energy-efficiency-the-decade-for-action
ssr-ee-paper.jsp?stream=sustainability-research-institute
Update 2011 Saving electricity in a hurry update 2022
Serrenho, A. C., Sousa, T., Warr, B., Ayres, R. U., & Domingos, - Sara Bryan Pasquier – International Energy Agency -
T. (2014). Decomposition of useful work intensity: The EU https://www.osti.gov/etdeweb/servlets/purl/21467294
(European Union)-15 countries from 1960 to 2009. Energy,
76, 704-715. https://doi.org/10.1016/j.energy.2014.08.068 Saving Electricity in a Hurry: A Japanese Experience
after the Great East Japan Earthquake in 2011 - Osamu
Serrenho, A. C., Warr, B., Sousa, T., Ayres, R. U., & Domingos, Kimura and Ken-ichiro Nishio, Central Research Institute
T. (2016). Structure and dynamics of useful work along of Electric Power Industry - https://www.researchgate.
the agriculture-industry-services transition: Portugal from net/publication/259827282_Saving_Electricity_in_a_
1856 to 2009. Structural Change and Economic Dynamics, Hurry_a_Japanese_Experience_After_the_Great_East_
36, 1-21. https://doi.org/https://doi.org/10.1016/j. Japan_Earthquake_in_2011
strueco.2015.10.004
Cracking the Energy Efficiency Case in Buildings,
Stercke, S. D. (2014). Dynamics of Energy Systems: A Useful Schneider Electric Sustainability Research Institute
Perspective. (October 2021) - https://www.se.com/ww/en/insights/
sustainability/sustainability-research-institute/ssr-ee-
Tengfei H., Weiguang C., Hong R., Wei F., Mingley Z., paper.jsp
Ningning L., Jingxin G. (2019). China’s building stock
estimation and energy intensity analysis. Journal of EHPA, feb. 2023 (https://www.ehpa.org/press_releases/
Cleaner Production. Volume 207, 10 January 2019, Pages heat-pump-record-3-million-units-sold-in-2022-
801-813. https://www.sciencedirect.com/science/article/ contributing-to-repowereu-targets/)
pii/S0959652618330749
EHPA Market Report 2022 - https://www.ehpa.org/
University of Michigan (n.d.). Residential Buildings market-data/
Factsheet. Center for Sustainable Systems. Accessed: May
2023. https://css.umich.edu/publications/factsheets/built- Heat pumps in existing residential buildings, Fraunhofer
environment/residential-buildings-factsheet ISE, 2021
UK COP26 (2022). COP26 President Alok Sharma’s remarks “Reinventing construction through a productivity
at the COP27 closing plenary. Accessed: November 2022. revolution”, McKinsey Global Institute (Feb. 2017) - https://
https://ukcop26.org/cop26-president-closing-remarks-at- www.mckinsey.com/capabilities/operations/our-insights/
cop27/ reinventing-construction-through-a-productivity-
revolution
Wadud, Z., MacKenzie, D., & Leiby, P. (2016). Help or
hindrance? The travel, energy and carbon impacts of Energy Efficiency Policy Opportunities for Electric Motor-
highly automated vehicles. Transportation Research Part Driven Systems, IEA (2011) - https://www.iea.org/reports/
A: Policy and Practice, 86, 1-18. https://doi.org/10.1016/j. energy-efficiency-policy-opportunities-for-electric-motor-
tra.2015.12.001 driven-systems
World Economic Forum (2022). The_Global_Lighthouse_ Road to a rapid transition to sustainable energy security
Network_Playbook_for_Responsible_Industry_ in Europe, Schneider Electric Sustainability Research
Transformation_2022. https://www3.weforum.org/docs/ Institute (October 2022) - https://www.se.com/ww/en/
WEF_The_Global_Lighthouse_Network_Playbook_for_ insights/sustainability/sustainability-research-institute/
Responsible_Industry_Transformation_2022.pdf road-to-a-rapid-transition-to-sustainable-energy-security-
World Economic Forum (2023). Global Lighthouse in-europe.jsp
Network, 2022. https://www3.weforum.org/docs/WEF_
Global_Lighthouse_Network_2023.pdf « L’amélioration de l’efficacité énergétique des
véhicules individuels » - Transports Urbains 2022/1
(n°121) - https://www.cairn.info/revue-transports-
urbains-2022-1-page-9.htm
https://fr.statista.com/statistiques/486554/
consommation-de-carburant-moyenne-voiture-france/

Acknowledgement
The Chair, Vice Chair, and members of the Global Council on Energy Efficiency would like to extend their appreciation and
gratitude to everyone who contributed to the successful rollout of this valuable knowledge project. Special thank you
to the teams in EDF and Schneider Electric for their partnership and dedicating valuable time and resources in support
of this project. A special acknowledgement and appreciation is also extended to the General Secretariate of the Global
Council on SDGs team for their continuous support, efforts, and contribution to the success of this project.
Whitepaper project team
Editorial supervision
• Carine de Boissezon, Chief Impact Officer, EDF
• Vincent Petit, SVP Climate and Energy Transition Research, Schneider Electric
Editorial contribution
• Alexandre Marty, Head of Climate and Natural Ressources, EDF
• Boraq Habayeb, Marketing Operations Specialist, Schneider Electric
• Carmen Munoz, Downstream R&D Director, EDF
• Didier Roustan, R&D Program Director, EDF
• Lana Nabulsi, Student, American University in Sharjah
• Prof. Madhavi Srinivasan, Executive Director, Energy Research Institute at Nanyang Technology
• Malu Paiva, Sustainability Executive Vice President, Vale Foundation
• Manish Pant, Executive Vice-President of International Operations, Schneider Electric
• Maria Fernanda Suarez, President, Banco Popular
• Marie-Aimée Boury, Head of Impact Based Finance, Societe Generale Corporate and Investment Banking
• Philippe Weill, Director, Impact-Based Finance, Societe Generale Corporate and Investment Banking
• Samer Costantini, Corporate Communications Director, MEA, Schneider Electric
Copywriting & editing

• Felicity Barr, Editor
Production & design

• Anshuman Majumdar, India Global Creative Studio Head
• Azza Khalid, Graduate Trainee, Marketing, Schneider Electric
• Meryl Ghattas, Head of Global Marketing, Gulf, Schneider Electric
• Yael VAN DER LEK, Communications Director, International Operations, Schneider Electric
Project management
• Carine de Boissezon, Chief Impact Officer, EDF
• Samer Costantini, Corporate Communications Director, MEA, Schneider Electric
• Vincent Petit, SVP Climate and Energy Transition Research, Schneider Electric
Executive supervision
• Luc Rémont, Chairman & Chief Executive Officer of EDF
• HE Dr Nawal Al-Hosany, Permanent Representative of the UAE to the International Renewable Energy Agency (IRENA)

Energy Efficiency Whitepaper - EN

Uploaded by

Copyright:

Available Formats

Energy Efficiency Whitepaper - EN

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Energy Efficiency Whitepaper - EN

Uploaded by

Copyright:

Available Formats

FOREWORD

By HE Abdulla Nasser Lootah, Deputy Minister of Cabinet Affairs for

As Vice Chairman of the Global Councils on Sustainable Development

Members of the Global Council on Energy Efficiency, under the

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 2

It is impossible to overestimate the significance of energy efficiency.

I encourage leaders, policymakers, industries, and communities

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 3

Luc Rémont HE. Dr. Nawal Al Hosany

It is with great pleasure and a shared sense of responsibility that we,

As stewards of the SDGs, we are heartened to witness the

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 4

Moreover, we recognize the indispensable role of young people in

Luc Rémont Dr. Nawal Al Hosany

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 5

Our current energy system is widely inefficient: two thirds of the

Technology solutions have been available for many years to improve

Yet, energy retrofit is not deployed at scale even though available

Investing in energy efficiency carries a positive impact on net

For a rapid deployment of energy efficiency solutions, priority should

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 7

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 8

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 9

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 10

“Emissions peaking before 2025, as the

Thanks to the work of the Intergovernmental Panel on

Yet, the stark reality is that these emissions have

Greenhouse gas emissions today total around

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 12

Figure 2 – Final energy demand across scenarios10

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 13

Another reason for the attractiveness of energy

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 14

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 15

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 16

Energy Efficiency Opportunities

Solution Potential Adoption / Issues

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 17

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 18

We need to be working on both sides of the equation

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 19

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 20

Financial incentives are sometimes used and prove

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 21

1980 standard building, paybacks by region (category A)34

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 22

Emblematic of the concept of renewable energy, heat

The simplest version to install, the aerothermal heat

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 23

The figures on the right were drawn

At an outdoor temperature of 0°C,

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 24

The energy renovation business is characterized by a

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 25

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 26

Yet, today, fewer than 30% of companies have

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 27

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 28

GLOBAL COUNCILS 2023-2024 - PROGRESS REPORT - 29