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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

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