Private sector buy-in is essential for the success of any energy efficiency effort

The report, which the World Economic Forum produced in partnership with Accenture, a management consulting and outsourcing firm, describes energy efficiency as the cornerstone in plans to meet global energy needs. But it says ‘there has been low global implementation of energy efficiency despite its potential to contribute to energy savings and reduce emissions.’

It also points out the difficulty countries are having with attempts to reduce energy use in spite of various commitments to lower C02 emissions.

Other revealing conclusions of the report:

Energy efficiency has often been described as “low-hanging fruit” for achieving energy savings because it is considered easy to do. However, the report notes that ’experience demonstrates that capturing this low-hanging fruit is not as easy as one would expect; business and consumers need incentives to want to do so.’

Companies and individuals tend to invest in assets and products they can see, feel and touch. Energy efficiency does not necessarily meet these criteria and must compete with other, more tangible business priorities.

World Economic Forum senior director Roberto Bocca notes that energy efficiency measures are still not being implemented at scale.

“The reasons for this range from market failure to institutional failures, and (they) need to be overcome if we are to use energy efficiency to effectively meet rising energy demand, support economic development and meet the critical challenges of climate change, energy security and economic competitiveness,” according to Bocca.

The report emphasises the major role of the private sector in achieving energy efficiency, and says the market will not reach scale without the involvement of the private sector. This involvement will be a necessary condition to achieving progress and scale.