Technologies that curb energy demand offer a pragmatic approach to climate change
At COP28 in 2023, nations made a commitment to tripling renewable energy capacity and doubling global energy efficiency improvements by 2030, placing energy efficiency at the forefront of policy decisions. Despite an overall increase in global climate finance, energy efficiency investments are lagging behind (
For so long as fossil fuel reliance persists, energy efficiency offers a pragmatic and universally beneficial contribution to the energy transition. Renewable energy production is the major solution to phasing out fossil fuels. But it also presents challenges, for example, land use conflicts, supply chain issues and waste management. Investing in energy efficiency and demand management represents a no-regret strategy that reduces energy consumption. Energy efficiency technologies and practices can be seamlessly integrated at all levels, from individual households to large-scale utilities. Moreover, energy efficiency measures enhance energy security by reducing dependence on imported fuels and increasing the resilience of energy systems faced by fluctuations in supply and demand.
End-use and enabling technologies leading clean energy technology innovation
Analyzing energy patent trends, while not necessarily indicative of market demand or commercial success, offers valuable insights into technological advancements and industry directions. Recent patent trends are dominated by enabling technologies such as batteries, hydrogen, smart grids and carbon capture, reflecting a broader focus on end-use solutions and decentralized energy systems. Clean energy innovations have witnessed a remarkable growth over the years, with solar leading the increase in renewable energy patent filings (
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Making city energy use smarter
Cities are major hubs of energy consumption and have a pivotal role to play in the energy transition. The adoption of electric buses and autonomous vehicles presents opportunities for reducing fuel consumption, although challenges such as high initial costs and public acceptance persist. Innovations in the energy efficiency of buildings, renewable energy integration in public spaces and the urban water–energy nexus are also essential for the urban energy transition. Promising case studies – for example, Senegal’s electric bus rapid transit system and London’s Underground waste heat recovery project – illustrate technology’s potential to create more sustainable urban environments when addressing socioeconomic inequalities.
However, effective energy management begins at the design stage, emphasizing the creation of dense, walkable cities, as well as well-insulated private and commercial buildings that take advantage of passive design principles. This serves to curb energy demand, by reducing dependency on transport fuel and energy-consuming heating and cooling technologies. Designing energy efficient cities brings numerous long-term cost-and-energy savings. Cities at the forefront are further optimizing energy and fuel use at various levels through automated and interconnected digital solutions such as intelligent traffic systems and smart streetlights. Yet, many growing cities fail to capitalize on this opportunity at the outset. Furthermore, the capacity to implement such measures – and adopt solutions that manage cities’ energy demand, from households to end-use sectors – varies significantly across cities worldwide.
Optimizing heating, cooling and water use to meet rising demand
Heating and cooling account for the majority of household energy use. This highlights the importance of technologies like efficient heating systems, solar thermal collectors and smart appliances. Moreover, the integration of water and energy management is essential, because domestic hot water can account for a significant proportion of household energy use. Growing market for energy-efficient and water-saving appliances, coupled with supportive legislation and consumer awareness, offers opportunities to reduce energy expenditure and emissions. While minimum energy performance standards and labels have a proven impact on technology adoption, coverage has yet to extend to all countries and types of appliances.
As communities have started to explore decentralized energy production, so the concept of “prosumers” – households that both consume and produce energy – has emerged. Enabled by technology, it empowers residents to engage actively in the energy transition through collective initiatives. This consumer willingness play an active role is further evidenced by the large growth in household spending on climate mitigation solutions, largely driven by expenditure on electric vehicles, followed by residential solar PV, solar water heaters and home retrofits for energy efficiency.
Water utilities are coming under increasing pressure, because of dwindling water supplies exacerbated by climate change, while at the same time accounting for about 4 percent of global electricity consumption. Outdated infrastructure significantly contributes to this energy intensity. But technological advances such as efficient pumps, advanced aeration methods and smart water management systems offer opportunities to reduce energy consumption. The integration of digital technologies like smart meters and AI is gaining traction, including in the Global South. These facilitate real-time monitoring and optimization of water distribution. Furthermore, wastewater treatment plants are being explored as potential energy recovery facilities through anaerobic digestion and biogas production. Emerging technologies such as microbial fuel cells and heat recovery systems, alongside more energy-efficient desalination processes, are also poised to enhance efficiency within the water sector. This is increasingly essential as the demand for water rises in the face of climate change impacts.
Renewable energy solutions overcome rural energy challenges
Rural and remote communities face unique energy access challenges due to low population density, high capital investment and technical difficulties. Extending the electric grid to these areas is often costly. Off-grid solutions have up until now relied on fossil fuels, while household energy use in rural areas often relies on inefficient biomass fuels and kerosene, both of which contribute to greenhouse gas (GHG) emissions. Advances in renewable energy technologies, like solar and wind, and innovations in energy storage and energy efficiency are crucial to addressing this problem.
Mini- and micro-grids powered by renewables are emerging as cost-effective solutions for developing and developed countries alike. Decentralized solutions such as renewable-powered mini-grids and community-centric models are increasingly common. Advanced technologies like improved solar PV cells, battery storage and AI-powered control systems enhance energy management. Meanwhile innovations in microgrids, swarm electrification, small-scale hydropower, and solar and waste-to-energy technologies support rural development and climate resilience. Solar home and hybrid systems are effective for off-grid areas. Meanwhile clean cooking technologies and waste-to-energy solutions also offer opportunities to reduce energy consumption, while also capturing other significant benefits, such as improved health, air quality, reduced deforestation, and waste management.
Greening agriculture with energy efficiency innovations
Agriculture significantly impacts climate change through GHG emissions, in part from energy use. A new green revolution will need to maximize the use of technologies already available to green production and also feed a growing global population. Innovations such as agrivoltaics (solar panels combined with crops) and aquavoltaics (solar panels integrated with aquaculture) can contribute to both mitigation and adaptation, through co-locating panels for both renewable energy and crop production. Energy-efficient practices and technologies such as precision agriculture, solar-powered irrigation, electrified machinery, farm management software, and Internet of things (IoT) sensors help reduce emissions, conserve water and save energy. Innovative financing models such as pay-as-you-go, leasing and cooperative models, are important for both rural populations and farmers to be able to access and adopt these technologies.
Post-harvest processing and storage have proven highly energy intensive. Food loss and waste contribute significantly to GHG emissions, with about 30 percent of produced food lost or wasted, especially in low- and middle-income countries. Technological innovation like solar-powered and energy-efficient dryers can address energy demand as well as post-harvest losses, though access to such technologies is often limited for smallholder farmers. Energy efficient technologies for dairy processing, drying, milling, grain storage and renewable energy sources can mitigate energy demand. Innovations in cold chain logistics, packaging and refrigeration are essential for addressing energy consumption, halting food loss and reducing emissions.
Importantly, clean rural energy technologies are tools for adaptation as well as mitigation. They strengthen resilience to grid outages and disruption caused by climate change impacts; provide rural electrification access to underserved areas; and ensure a reliable energy supply in the face of climate-related challenges. The technologies here presented can bring a wide range of adaptation and resilience benefits to rural populations, including energy security and independence, improved air quality, health, economic standards and quality of life.
Often overlooked energy-consumers
Supermarkets, as significant energy consumers, present unique challenges and opportunities for energy efficiency and sustainability. Originating in the United States and Europe in the early 20th century and expanding globally, supermarkets utilize economies of scale to offer diverse products, but face high energy demands for refrigeration, lighting and temperature control. These demands, coupled with food waste and refrigerant emissions, amplify their environmental impact. The sector’s energy intensity, particularly in smaller stores, underscores the need for energy-efficient technologies. Advances in transcritical CO2 refrigeration systems, efficient and automated HVAC systems, heat recovery and on-site renewable energy production can all drastically reduce energy consumption and emissions.
Health care facilities are crucial for patient care, but have significant environmental impacts that are often overlooked. These facilities also have high energy use intensity due to their round-the-clock operations, particularly with respect to HVAC systems, lighting and medical equipment. Moreover, they are vulnerable to extreme weather and power outages, which could threaten patient care, necessitating resilient energy infrastructure. Global initiatives such as Healthcare Without Harm are promoting greener hospitals through voluntary sustainability reporting, coordinated action and knowledge sharing on best practice measures. Efficient HVAC, lighting and decentralized energy systems, including solar and combined heat and power, are vital for reducing emissions and enhancing energy security. Technologies like adaptive ventilation systems, efficient medical freezers and MRI machines, and automated LED lighting are key to these efforts, alongside addressing standby power consumption.
Data centers – a critical infrastructure so essential for our digital lives – consume significant energy and water, raising concerns about their negative impact. While data also underpins many modern climate solutions, from climate forecasting to precision farming, the net impact of data usage on the climate is not commonly understood. The section on data centers examines innovative solutions to reduce their energy consumption and cooling needs. As the demand for data grows, particularly with the rise of AI, solutions such as on-site renewable energy generation and green hydrogen back-up power become crucial. The geographical location of data centers affects their climate impact, with areas rich in green electricity and cool climates attracting cloud computing facilities. Various strategies, including virtualization, load balancing and the use of energy-efficient hardware and software, improve efficiency and climate resilience. Meanwhile innovations in cooling technologies – for example, immersion cooling and free cooling – help optimize temperature management. Additionally, waste heat recovery systems are increasingly being explored for repurposing excess heat for local energy needs. Technological innovations developed for data center operations in particular are readily available and their adoption is vital for minimizing the climate impact of rising global data consumption.