Energy efficiency initiatives are now about global collaboration. Through international policies and commitments to reduce emissions, governments, businesses and organisations around the world are working together to create an efficiency strategy for the world. The goal: putting the world on a path to three percent annual efficiency improvement.
The EE Global Alliance broke down the who, what, why, and how of the coalition’s efforts.
What is the Three Percent Club?
The Three Percent Club is a collaboration of governments and supporting organizations that commit to working together to put the world on a path to three percent annual efficiency improvement.
- Countries: Country governments commit to stronger policy action to put the world on a path of three percent annual efficiency improvement. Countries use the best levers available to them in an ambitious manner, such as adding specific efficiency actions and commitments in national plans or providing financial and technical support to other countries.
- Supporting Organizations: Private-sector and financial institutions agree to set public energy efficiency improvement goals for their own operations consistent with achieving a three percent annual energy efficiency improvement, and to participate in a coalition of international organizations that will support policy development and project implementation through technical assistance and national engagement.
Demand side efficiency improvements represent nearly half of the total emissions abatement opportunity to deliver the Paris GHG emission reduction goals, particularly in the near term, while offering wider economic and social benefits.
Why three percent?
Three percent annual improvement (measured as global energy intensity) represents the opportunity (analysis shows it is achievable through good policies); the necessity (it is the rate required to deliver the Paris goals); and the commitment (to meet Sustainable Development Goal 7).
Efficiency progress has been slowing since 2015, down from almost 3% annual improvement in energy intensity to just 1.3% in 2018, and immediate policy action is required to reverse this worrying trend. Many of the policy and technology solutions are well known, yet only a minority of Nationally Determined Commitments (NDCs) currently contain specific commitments to energy efficiency actions or targets. With growing pressure for stronger action on the Paris goals, revision of NDCs represents a timely and ideal intervention point to strengthen ambition on efficiency through firm policy commitments backed by private-sector and institutional commitments to provide technical and financial support.
To support the member countries, the Three Percent Club coalition leverages the combined global resources of the IEA, the SEforAll Energy Efficiency Accelerators and Hub, Global Environment Facility, UN Environment, the European Bank for Reconstruction and Development, and the EEGA. Key industry partners commit via the Energy Efficiency Global Alliance to provide technical, financial, and project support to the participating countries.
The Three Percent Club coalition has the expertise, resources, networks and established programs necessary to support delivery of the country commitments. Companies and institutions that sign the Declaration of Support become part of a broader global collaboration available to engage in projects, capacity building, and technical assistance with member countries. The EE Global Alliance serves as a clearinghouse, connecting member governments with supporting organizations that have the appropriate technical expertise and geographic scope to scale up energy efficiency action and impacts across the globe.
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