Why Efficiency Matters in the Race to Decarbonise

To truly decarbonise, we must rethink wasteful systems; renewable energy alone won’t replace fossil fuels.

Decarbonising our energy supply through renewable sources of energy is key. However, if the current wasteful practices continue, renewable energy consumption will add to fossil fuel consumption instead of replacing it. Investing in a more efficient energy system is key to decarbonisation, competitiveness, and security. 

A world stuck in the past 

The world we live in is stuck in the past. The technologies allowing us to exploit resources have remained largely unchanged since the Industrial Revolution. Our economy is characterised by waste and inefficiency. 

Consider that internal combustion engines lose more than two-thirds of the energy we create, and more than a quarter of our drinking water is lost annually due to preventable and treatable leaks in the distribution network. Or consider that a third of the food we produce is thrown away – wasting not just the final product but all the energy and resources needed to produce and get it to where it is meant to be. We can do so much better.  

The value of energy efficiency 

Energy efficiency is not a new concept, especially for EU lawmakers. Not only does it allow us to save resources but, perhaps more importantly for many, money. It has been estimated that around $4.5 trillion could be saved annually thanks to energy efficiency. 

Energy efficiency in buildings alone can almost halve seasonal peak demand (up to 49.5% reduction) annually by 2050, avoiding stranded assets and unnecessary investments in grids. In doing so, €44.2 billion could be saved every year, making the much-needed investments in the EU’s distribution grid more cost-effective!

Energy efficiency in buildings alone can almost halve seasonal peak demand (up to 49.5% reduction) annually by 2050, avoiding stranded assets and unnecessary investments in grids.

Why is it so difficult to implement? 

Energy efficiency is still seen by many as a restriction of business opportunity. We need to change that narrative. 

At a time when competitiveness is at the top of policymakers’ attention, efficiency should be seen as a close ally. By investing in efficient production systems, costs are reduced giving businesses a double competitive advantage of producing at a lower cost and in a cleaner way. 

Solutions are within reach 

The good news is innovative, efficient solutions exist! The Solar Impulse Foundation has identified and labelled more than 1,500 existing solutions that can make this paradigm shift a reality, in virtually any sector of society. 

These are just a few among the many already existing, showing that the shift we are calling for is realistic and within reach. 

Financing efficient solutions  

Now, mobilising public and private capital to invest in clean and efficient solutions and modernise our economies will be key. 

New business models that reward efficiency must emerge. EU institutions and financial stakeholders must propose new financing tools to tackle the double challenge of high capital expenditure and higher risk for businesses, especially for small and medium-sized enterprises. 

A modernised economy based on efficiency is a qualitative economy that has as a key driver the continuous optimisation of resources. 

New business models that reward efficiency must emerge.

Efficiency as the cornerstone of progress 

The fundamental goal is to achieve heightened efficiency in various sectors, prioritising sustainable practices and minimising waste, accomplishing more (and better) with fewer resources, thereby contributing to a reduced environmental footprint. 

Decarbonisation is no longer the end goal but  a consequence of a modernisation process, one that creates jobs and economic activity. 

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.