Use energy efficiency as first fuel and develop people-centred energy transitions

The International Energy Agency (IEA) held its 10^th Annual Global Energy Efficiency conference in Brussels on 12-13 June 2025. The event brought together 700 participants from around 100 countries, with speakers including the King of Lesotho, energy ministers, European Union commissioners, energy company CEO’s and other senior leaders working in energy efficiency across the world. On the 10^th anniversary of the Paris Agreement, the key message from the conference was clear: energy efficiency needs to be the first fuel and at the core of everything we do to deal with the climate crisis, volatile energy prices and changing energy security.

In the opening remarks of the conference, Dan Jørgensen, Commissioner for Energy and Housing at the European Commission, highlighted energy accessibility and affordability for people, as well as companies, as the number one energy policy priority. In the winter of 2024-2025, 47 million people in Europe could not afford to heat their homes, with 1 in 10 Europeans risking energy inequity. He made it clear that climate change is the biggest challenge we face for the rest of our lives, and this is already having catastrophic consequences across the world but particularly in the most vulnerable parts of the planet which will be hit hardest. He urged countries to consider energy efficiency as the key for energy security, and highlighted how the EU is helping Ukraine by sending a clear signal to Russia that there cannot be any more weaponising of energy in Europe.

As the Commissioner put it, “energy efficiency needs to be at the core of everything we do”, and while this takes investment it also pays back fast. IEA’s Executive Director Fatih Birol, reiterated these points and called for energy efficiency to be the very first fuel, particularly at a time when global electricity demand is sky rocketing. The main drivers are not – like some would like you to believe – electric vehicles or AI, but the increased sale of air conditioners. This is a worldwide trend, as highlighted by the Minister of Energy of Malawi, Ibrahim Matola. While many people still rely on solid fuels for cooking in countries like Malawi, the use of air conditioning is increasing with trends such as increased working from home following the covid pandemic. Ari Reeves, Senior Director of Research at CLASP laid out the stats: appliances and equipment account for 36% of global final energy consumption.

One of the most powerful keynotes at the event was by the King of Lesotho, His Majesty Letsie III, who gave a stark reminder that 800 million people in Africa do not have access to electricity but rely on solid fuels like wood and biomass as an energy source. This has implications such as deforestation and gender inequality, with more women exposed to polluting solid fuel emissions from cooking especially. Countries like Lesotho, with its temperate climate that can reach highs of +30 C in the summer and lows of -20 C in the winter, has a challenge to deliver universal energy access without locking in high emissions. For this, Lesotho aims to act on the justice principles of restorative, distributive and procedural justice to realise a just energy transition where Lesotho is not waiting to be rescued, but will use all resources to catalyse a just transition. The King highlighted that with Africa as a continent having 60% of the world’s solar potential, this provides vast opportunities to develop renewable energy.

Measures such as using special architectural designs and materials to deliver energy efficient homes, seeking investment that is fit for purpose and not just adding to national debt, using innovative social enterprises, reforestation, and building skills in engineering, technology, policy and research, are all tools in the energy transition. Particular attention is being paid to improving women’s lives both in terms of home energy inequities but also representation in the energy sector. The King also talked about the opportunity for countries like Lesotho to leapfrog outdated technologies, and use new digital technologies, such as smart consumption, to deliver a faster energy transition.

In the European context, buildings still present a challenge. Jes Munk Hanse, CEO of insulation company Rockwool, reminded that 30-40% of energy use goes into buildings, no matter where you are in the world, while Ulrik Gernow, CEO of Grundfos stated that 10% of electricity in the world is consumed for moving water. Lars Peterson, CEO of window company Velux reminded that 75% of buildings in Europe today are inefficient and uncomfortable, and 85% of buildings that are standing today will still be standing in 2050. However, there is potential for energy efficiency measures in EU to deliver 40% of the energy demand reductions needed in buildings. This presents a good business opportunity but is also a challenge. Given that only 0.2% buildings are going through deep renovation, as highlighted by Julie Kjestrup, President, Efficient Buildings Europe, governments need to act urgently to move this forward. Anne-Laure de Chammard, Excutive Vice President of Siemens Energy, outlined the following four asks a CEO roundtable had formulated on energy efficiency:

1. a change in awareness and narratives on energy efficiency is needed,
2. governments need to help drive clarity on energy efficiency and the message that we need to do more with less – this can be a good for business cases as it lowers costs and increases resilience,
3. regulation should stay the course and have clear long-term guidelines, and
4. energy efficiency needs to be embedded at the start of every project.

She also reminded that energy efficiency does not stop at borders but is a global effort, and policy makers could explore measures like incentivising energy saving in the same way as they do with renewable energy use.

At times of increasing geo-political tensions, widening inequality and projections of data centres consuming electricity at the rate equivalent to India’s electricity consumption or annual drinking water consumption of the US by 2030 (as stated by Ulrik Gernow), energy efficiency is the fastest way to achieve energy independency and address inequalities. This could also be a good political message as moving on the demand side is faster and cheaper, and the technologies such as insulation, windows, and heat pumps, for example, are available now. Many speakers, including Ben Copp, Director General at the Office of Energy Efficiency in Canada, called for thinking beyond technology and developing people-centred energy transitions. The clear inequalities within energy systems need solving. People with increasing incomes have, for example, increasing air conditioning, whereas others have to spend a very high proportion of their disposable income on energy, causing hardship.

A people-centre energy transition can address both increasing demand as well as the hardship of not having enough energy services such as clean electricity access. Politicians in particular need help to communicate the energy transitions better – that they are about better houses and better living. Without positive messaging, there is a danger of a backlash if it is seen that only a few people benefit. One positive example of people-centred transitions was given by First Nations Chief Sharleen Gale, who leads the development of energy projects by indigenous communities in British Colombia. Community-level energy action can address many of the pitfalls that previous energy systems have witnessed in land use, ownership and benefits, and help democratise energy systems. A ministerial roundtable held at the conference resulted in a reaffirming of the commitment to double the progress in energy efficiency by 2030.

As politicians and leaders prepare for large international energy and climate events, like the COP30 taking place in Brazil later this year, they need to recognise that energy systems as we know are changing. They are becoming more pluralistic, decentralised and people-centred. This means that more consideration is needed not only for the complex systems of integrating energy efficiency and renewable energy, but also for the more complex human aspects such as emotional responses, social preferences, and capacities related to the way people travel and use their homes.