In Short : According to the IEA, global industry has accounted for 80% of the increase in energy demand since 2019. Meanwhile, energy efficiency improvements have slowed to just 1% annually—well below the 4% target needed to meet 2030 climate goals. The stagnation in efficiency gains poses a serious challenge to global emissions reduction and energy sustainability efforts.
In Detail : Global industry has been the dominant force behind the sharp increase in global energy demand since 2019, accounting for nearly 80% of the total rise, according to a new report from the International Energy Agency (IEA). This surge is driven by expanding industrial activities in key economies, particularly in sectors such as manufacturing, construction, and heavy industry.
At the same time, improvements in global energy efficiency have significantly slowed. The annual rate of progress has dropped to around 1%, falling well short of the 4% yearly improvement required to stay on track with international climate targets set for 2030. This slowdown raises concerns about the feasibility of achieving net-zero emissions.
The IEA notes that energy efficiency is a vital tool for both economic and environmental sustainability. Efficiency gains reduce overall energy consumption, cut emissions, and ease pressure on energy systems. However, the current trajectory suggests that policy and investment support are not keeping pace with growing energy demands.
Several contributing factors are behind the stalling progress in efficiency. These include delayed investments in modern technologies, insufficient policy enforcement, and an overall lack of urgency in energy-saving measures across sectors. Without stronger action, the world risks locking in energy-intensive practices that are harder to reverse.
The agency also highlighted the influence of extreme weather and increased digital infrastructure, including data centers, on energy consumption patterns. These developments further emphasize the need for rapid innovation and aggressive deployment of energy-efficient solutions, especially in the industrial and commercial sectors.
The report calls on governments to implement more ambitious policies and incentives to accelerate energy efficiency improvements. It stresses that without a renewed global push, rising energy demand—driven largely by industry—will continue to undermine progress toward a more sustainable and climate-resilient future.
