Governments push energy efficiency amidst Strait of Hormuz crisis

A joint statement cited the Middle East energy market disruption as the trigger for faster action.

Governments have agreed to make energy efficiency a cornerstone of energy policy in response to energy market disruption linked to the Strait of Hormuz crisis and the war in the Middle East.

A joint statement issued at the International Energy Agency’s (IEA) 11th Annual Global Conference on Energy Efficiency in Montreal, Canada, said recent volatility in global energy markets has reinforced the need to accelerate energy efficiency measures.

Participants in the statement include the Asia-Pacific countries Japan, Korea, Lao PDR, Uzbekistan, and Vietnam.

The statement calls for stronger action on energy efficiency, including support for vulnerable households and small and medium-sized enterprises, improved efficiency in buildings and data centres, and measures to unlock investment without adding administrative burdens.

“Energy efficiency is one of the highest-return investments an economy can make: lower costs for households and businesses, stronger energy security, and a foundation for long-term competitiveness,” said Julie Dabrusin, Canada’s Minister of the Environment, Climate Change and Nature.

The statement says governments will ensure wider access to the benefits of energy efficiency and pursue policies that ease immediate cost pressures whilst strengthening long-term resilience.

“As successive energy crises have shown, energy efficiency remains one of the most powerful tools available to governments for strengthening energy security, lowering costs, and boosting economic competitiveness,” said Fatih Birol, Executive Director of the IEA.

The initiative builds on prior commitments made at COP28 and the IEA’s annual conferences, where countries agreed to work towards doubling the global rate of energy efficiency improvements by 2030.