• Investment in energy-efficient technologies grew by 4% in 2024, reaching a record USD 660 billion, reports the IEA.

• The MENA region sees rising investments in energy efficiency, driven by sustainability demands and carbon reduction goals.

• The IEA calls for stronger global policies to accelerate energy efficiency as a key part of inclusive energy transitions.

Global Investment Surge in Energy Efficiency

Investment in energy-efficient technologies grew by 4% in 2024 and is on track to reach a record USD 660 billion, according to a new analysis from the International Energy Agency (IEA) on Energy Efficiency.

Middle East’s Energy Profile

Approximately 95% of the electricity generated in the Middle East is derived from natural gas and oil, the highest share globally, despite the region also possessing some of the world’s most abundant solar energy resources.

IEA’s Vision for Energy Efficiency

“Energy efficiency is a key pillar of secure, affordable, and inclusive energy transitions. The IEA is working closer than ever with governments around the world to ensure that it remains a top policy priority,” said IEA Executive Director Fatih Birol.

Readiness for Action: Policies and Technologies in Place

“Fortunately, the policies and technologies to accelerate efficiency progress are readily available today, and many governments are taking important steps forward. What we hope to see now is faster and stronger policy responses across the globe,” Birol added.

MENA Region’s Growing Investment in Energy Efficiency

Investment in energy-efficient technologies in the MENA (Middle East and North Africa) region has seen significant growth. This is driven by increasing demand for sustainable solutions.

MENA’s Role in Global Oil and Gas Production

According to the IEA, the MENA region hosts five of the world’s top 10 oil producers: Saudi Arabia, Iraq, the United Arab Emirates, Iran, and Kuwait. Three of the top 20 are gas producers.

MENA countries are actively working to integrate energy efficiency measures across sectors. The sectors include buildings, industry, and transportation, with the goal of enhancing energy security, reducing costs, and supporting the transition to cleaner energy sources.

Balancing Economic Growth with Environmental Goals

This growth is reflective of the region’s increasing recognition of the need to balance economic development with environmental sustainability.

Governments in the MENA region are implementing policies to drive these investments. The policies are including green building standards, efficient infrastructure, and renewable energy integration.

Leading Initiatives in MENA: UAE, Saudi Arabia, and Egypt

For instance, the UAE has been at the forefront with initiatives like the National Energy Efficiency Program. The program aimed at reducing energy consumption and improving efficiency in buildings and industries.

Saudi Arabia, under its Vision 2030 plan, is also investing in energy-efficient technologies to diversify its economy. Similarly, Egypt is enhancing efficiency across its industrial sectors as part of its economic and environmental reforms.