Global energy efficiency improvements need to increase more than threefold, from 1.7% in 2025 to an annual average of 5.6% through 2030, to meet critical climate and energy targets for 2030, the International Renewable Energy Agency (IRENA) said in a new report.

IRENA’s “Delivering on the UAE Consensus” report, prepared in partnership with the COP31 Presidency and the Global Renewables Alliance, said global progress on energy efficiency remains below the target set for 2030, The Caspian Post reports, citing Anadolu Agency.

The report said energy efficiency improvements must rise from 1.7% in 2025 to an annual average of 5.6% over the 2026-2030 period.

The 1.7% improvement in energy intensity recorded in 2025 fell short of the 4% annual average target through 2030. As a result, an average annual improvement of 5.6% will be required between 2026 and 2030 to close the gap, according to IRENA.

Achieving the target will require accelerated investment in energy efficiency, particularly in buildings, transport and industry.

IRENA said global investment in energy efficiency and savings totaled $369 billion in 2025 but needs to increase to an annual average of $3.2 trillion during 2026-2030.

The report identified direct electrification of end-use sectors as a key driver of energy efficiency gains.

Technologies including electric vehicles and heat pumps are more efficient than fossil-fuel alternatives, helping lower overall final energy demand even as electricity consumption increases.

The share of electricity in final energy consumption needs to rise from 23% in 2023 to 30% by 2030. The COP31 Presidency’s agenda for 2035 sets a target of increasing this share to 35%.

IRENA said accelerating electrification beyond 2030 will also be necessary, with the transformation of buildings, industry and transport playing an important role.

By 2030, electricity is expected to account for 53% of energy use in buildings, compared with 36% in 2023. The share in industry needs to increase from 27% to 31%, while in transport it should rise from 1% to 7%.

The report identified electric vehicles, heat pumps and other energy-efficient electric technologies as key tools for this transition.

According to IRENA, electric heat pumps can achieve around 300%-400% higher efficiency than conventional boilers, while electric vehicles can be approximately 60%-80% more efficient than vehicles powered by internal combustion engines.

The number of battery electric and plug-in hybrid light-duty passenger vehicles needs to increase from around 57 million in 2024 to 360 million by 2030, the report said.

This would bring electric vehicles to approximately 20% of the global vehicle fleet by 2030, with electric vehicles accounting for a similar share of transport activity.

IRENA said the transition will require more than increased EV sales, including expanded charging infrastructure, greater use of public transport and measures to reduce transport demand.

The report also calls for stronger energy efficiency standards, labeling systems, financial incentives and building renovation policies.

Of the 120 third-generation Nationally Determined Contributions reviewed by IRENA, 90%, or 108 countries, refer to energy efficiency. However, only 43% establish measurable and quantified efficiency targets.