Action on energy demand can save global economy $2 trillion a year: WEF

A series of corporate initiatives focused at decreasing the intensity of energy consumption may result in yearly savings of at least $2 trillion for the global economy if implemented by the end of this decade, according to a new WEF report released on Monday.These targeted practical initiatives can enhance growth while also reducing greenhouse gas emissions.The World Economic Forum (WEF) claimed in a paper released ahead of its Annual Meeting in Davos from January 15 to January 19 that the appropriate policy frameworks will unlock growth and productivity, save firms money, provide a competitive edge, and cut emissions.Launched in partnership with PwC, the study has the backing of more than 120 CEOs worldwide who are members of the WEF's International Business Council (IBC), a collective that accounts for 3% of the world's energy consumption.Governments promised to double the pace of energy efficiency improvement over the same period and quadruple the world's renewable energy capacity by 2030 as part of one of the most broadly backed proposals at the United Nations climate change conference, COP28.Between 2023 and 2030, countries must reduce their energy intensity at least twice as quickly as they did in prior years, necessitating significant adjustments from the private sector.Underlining the practical actions that businesses can take to act on energy demand, the WEF said these would be driven by energy-intensity reductions in buildings, industry and transport.Examples include energy-saving measures such as using artificial intelligence to optimize factory line design, energy efficiency, value chain collaboration, industrial clustering to share clean energy initiatives, retrofitting buildings and electrification of transport.