The world needs less and less energy to produce one unit of gross domestic product (GDP). Energy intensity has declined at an average rate of 2.1 per cent per year since 2010, a significant improvement over the average growth rate of 1.3 per cent between 1970 and 2010, writes the International Energy Agency (IEA) in its latest market report on energy efficiency.

But energy savings are not distributed evenly across economic sectors. While the industrial sector has succeeded in reducing its energy intensity by nearly 20 per cent since 2000, the building and transport sectors are lagging behind.

According to the IEA, while annual net building-related greenhouse gas emissions decreased from 2013 to 2016, buildings final energy consumption grew steadily from 119 EJ in 2010 to 124 EJ in 2015. Increasing floor area growth, which is outpacing energy intensity reduction, is to blame for this rise in energy consumption.

Some countries, such as Denmark and Germany, are focusing on building envelope policies to drive energy efficiency, while others, like Japan and South Korea, see heating, ventilation and air conditioning (HVAC) equipment as a key driver. Efficiency improvements of 10 per cent to 20 per cent are possible in most countries from appliances, equipment and lighting products that are already commercially available.

As the IEA points out, two key international agreements – the Paris climate accords and the Montreal Protocol on ozone depletion – are targeting energy efficiency in buildings as a means to achieve broader goals. “The result could be a significant boost for energy efficiency efforts worldwide.”