Green drive can unlock $2-trn saving for global GDP

Targeted Actions

• Govts at COP28 pledged to triple the world’s RE capacity by 2030
• Keen on doubling rate of energy efficiency
• Countries need to cut their energy intensity at least twice as fast during 2023-2030
• Call for substantial changes from private sector

New Delhi: A set of business actions aimed at reducing the intensity of energy demand can unlock annual savings of at least $2 trillion a year for the global economy if measures are taken by the end of this decade, a new WEF study showed on Monday.

These targeted practical actions can also boost growth and cut greenhouse gas emissions. Releasing the report ahead of its Annual Meeting in Davos during January 15-19, the World Economic Forum (WEF) said the right policy frameworks would unlock growth and productivity, save companies cash, deliver competitive advantage and reduce emissions. The report was launched in collaboration with PwC and is supported by over 120 global CEOs who are members of the WEF’s International Business Council (IBC), a group representing three per cent of global energy use.

In one of the most widely supported initiatives at United Nations (UN) climate change conference COP28, governments pledged to triple the world’s renewable energy capacity by 2030 and double the rate of energy efficiency improvement over the same period. Countries need to cut their energy intensity at least twice as fast between 2023 and 2030 as they did in previous years, which call for substantial changes from the private sector.

Underlining the practical actions that businesses can take to act on energy demand, the WEF said these would be driven by energy-intensity reductions in buildings, industry and transport. Examples include energy-saving measures.