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06 ENERGY EFFICIENCY<br />
The international community continued to pursue energy<br />
efficiency action by engaging in various collaborative activities<br />
such as the Sustainable Energy for All (SE4All) Global Energy<br />
Efficiency Accelerator Platform, the G20’s Energy Efficiency<br />
Action Plan, the Clean Energy Ministerial’s energy efficiency<br />
initiatives and the European Union’s Energy Union Framework<br />
Strategy. 3 International organisations initiated several additional<br />
energy efficiency activities during the year. 4<br />
Out of the 189 countries that outlined voluntary plans to<br />
decelerate greenhouse gas emissions in their Intended<br />
Nationally Determined Contributions (INDCs) for COP21, 147<br />
countries mentioned renewable energy, and 167 countries<br />
mentioned energy efficiency; in addition, some countries<br />
committed to fossil fuel subsidy reform. 5 Over 50 countries<br />
had committed to phasing out fossil fuel subsidies under G20<br />
and Asia-Pacific Economic Cooperation (APEC) processes<br />
by the end of 2015. 6 Reducing or eliminating such subsidies<br />
brings prices closer to their true economic costs, removing<br />
artificial impediments to energy efficiency improvements and<br />
renewable energy deployment.<br />
Cities, which accommodate over half of the world's population,<br />
also continued to play an increasingly prominent and active<br />
role in accelerating energy efficiency. In 2015, cities received<br />
international support from a number of initiatives and<br />
organisations, such as ICLEI, C40 and the Covenant of Mayors. 7<br />
Commercial and financial actors also mobilised to increase global<br />
investment in energy efficiency during the year. 8<br />
Due to a lack of better indicators, reduction in energy intensity of<br />
national economies typically is used as a proxy for improvements<br />
in energy efficiency at the national or global level. 9 Energy intensity<br />
is calculated as units of energy consumed per unit of economic<br />
output, or gross domestic product (GDP). Changes in energy<br />
intensity can reflect changes in energy efficiency of an economy,<br />
but they also reflect the impact of other factors, such as structural<br />
changes in the economy to less energy-intensive activities and<br />
the effect of fuel substitution, particularly to renewable energy. 10<br />
At the global level, primary energy intensity has decreased<br />
continuously for more than two decades. Between 1990 and<br />
2014, primary energy intensity dropped by more than 30%; the<br />
average annual rate of decline was 1.5%. Nonetheless, global<br />
economic growth has been far greater, resulting in steady net<br />
growth in energy demand, increasing by 56% between 1990 and<br />
2014, with an average annual growth rate of 1.9%. Global total<br />
primary energy demand (TPED) exceeded 13.7 billion tonnes of<br />
oil equivalent in 2014. 11 ( p See Figure 43.)<br />
Figure 43. Global Primary Energy Intensity and Total Primary Energy Demand, 1990–2014<br />
koe/USD 2005<br />
0.25<br />
Compound average<br />
annual change<br />
Mtoe<br />
16,000<br />
0.224<br />
+1.9%<br />
13,737<br />
14,000<br />
0.20<br />
12,000<br />
0.15<br />
0.156<br />
10,000<br />
8,791<br />
-1.5%<br />
8,000<br />
0.10<br />
6,000<br />
Source: See<br />
endnote 11<br />
for this section.<br />
0.05<br />
World primary energy<br />
intensity (koe/USD 2005)<br />
World total primary<br />
energy demand (Mtoe)<br />
4,000<br />
2,000<br />
0<br />
0<br />
1990 1995 2000 2005 2010 2014<br />
Dollars are at constant purchasing power parities.<br />
124