Scaling Up Energy Efficiency: A Global Win for Growth, Jobs, and Climate

Globally, energy demand is rising rapidly due to increasing industrial activity, urbanization, the expansion of artificial intelligence and data centers, and climate-related needs like air conditioning.

In a world grappling with rising energy demand, mounting debt burdens, and climate-driven instability, energy efficiency has emerged as a transformative, low-cost solution that can drive economic growth, reduce emissions, and expand access to reliable, affordable power. As detailed in a new World Bank Group report, energy efficiency is increasingly being recognized as a pillar of global development—cutting energy waste while boosting productivity and resilience.

Investing in energy efficiency delivers a strong return of $3 to $5 for every dollar spent, while creating jobs, improving public services, and reducing the need for costly infrastructure. From modernizing buildings and upgrading appliances to revamping public services and transport systems, energy efficiency is powering opportunity across every sector.

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Meeting Soaring Demand While Curbing Costs

Globally, energy demand is rising rapidly due to increasing industrial activity, urbanization, the expansion of artificial intelligence and data centers, and climate-related needs like air conditioning. Without intervention, countries risk overspending on new power plants and fuel imports, leading to ballooning energy debt.

Energy efficiency provides a smarter pathway: “Powering more with less.” For over a billion people who lack access to reliable heating, cooling, and electricity, energy-efficient solutions can dramatically improve daily life.

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Türkiye: A Regional Leader in Energy Efficiency

One of the most compelling examples comes from Türkiye, where embedding energy efficiency into national policy has yielded remarkable results.

• Under its First National Energy Efficiency Action Plan (2017), Türkiye mobilized $8.5 billion in investments, achieving 14% savings in primary energy use—equal to 24 million tonnes of oil equivalent.

• The Second Action Plan (2024–2030) scales this ambition with a $20.2 billion investment targeting 37 million tonnes of savings, expanding efforts across residential, commercial, industrial, and public sectors.

In partnership with the World Bank, Türkiye launched the Energy Efficiency in Public Buildings Project, which:

• Renovated 372 buildings, saving nearly 200 GWh/year—enough to power 300,000 homes.

• Reduced energy bills by $11.5 million annually.

• Improved work and learning conditions for nearly 80,000 people in hospitals, schools, and government offices.

• Supported the future renovation of 500,000 public buildings, mobilizing an additional $8.8 billion in investment.

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Real-World Impact: Kandıra State Hospital

A shining example is Kandıra State Hospital in Kocaeli, where an energy automation upgrade now enables precise heating and cooling control.

“Between January and April 2025, our electricity bill dropped nearly 20%. We’re on track to hit our 35% savings target,” said Gürol Aydemir, Financial Affairs Director at the hospital. “These savings will be reinvested into essential services.”

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Jobs and Skills: Driving Economic Inclusion

Globally, energy efficiency was the largest source of energy sector jobs in 2022, employing nearly 11 million people. In Türkiye alone, the World Bank-supported project trained over 3,500 professionals in energy services and green construction.

Other regional highlights include:

• India: Energy Efficiency Services Ltd created 700 direct jobs and thousands more in efficient lighting and appliance production.

• Latin America & Caribbean: The Caribbean Efficient and Green-Energy Buildings Project will upgrade 500+ public buildings across Grenada, Guyana, and St. Lucia, with a focus on training women in energy careers.

• Global EDGE program: Over 10,000 experts trained in green building certification through IFC’s EDGE initiative.

“Increased investment in energy efficiency can address surging demand, improve security, and promote inclusive economic growth,” said Maria Marcela Silva, World Bank Regional Director for Infrastructure in Latin America and the Caribbean.

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A Global “LEAP” Forward

To scale energy efficiency globally, the World Bank Group is promoting its “LEAP” framework, calling for:

• Leadership and policy alignment

• Enabling environments for private sector investment

• Access to finance

• Programmatic approaches for national implementation

This includes scaling up its lending portfolio across buildings, lighting, water systems, and industry, while leveraging innovative financing tools and engaging donor partners.

“Energy efficiency is a central pillar in our approach to climate-smart, inclusive energy development,” said Demetrios Papathanasiou, Energy and Extractives Global Director. “Through our Scaling Up Energy Efficiency Academy, we’re fostering global knowledge-sharing and institutional reforms to help countries transition from pilots to national programs.”

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The Urgency of Collective Action

The path forward is clear. Scaling up energy efficiency can reduce emissions, avoid costly new infrastructure, and fuel resilient economic recovery. But it requires global collaboration, government leadership, and private sector mobilization.

With countries like Türkiye setting the pace, the momentum is building for a future where every kilowatt counts, every dollar delivers, and every citizen benefits.