Developing countries could cut their future power costs by billions while creating millions of jobs if they just got serious about energy efficiency, according to a World Bank report released on June 18. The study found that every dollar spent on making buildings, factories, and homes more energy efficient returns $3 to $5 in benefits. A typical middle-income country could save up to $11.6 billion in power infrastructure costs by 2050 just by using energy more wisely. Yet most governments are still treating efficiency as an afterthought instead of the economic goldmine it actually is.
The numbers tell a compelling story about wasted opportunities. Nearly two-thirds of the world’s energy gets wasted, while energy efficiency already employs almost 11 million people worldwide – more than any other part of the energy sector. These jobs span everything from manufacturing efficient appliances to installing better insulation and providing technical support services. Countries that invest in efficiency programs can reduce energy poverty, cut government spending, and make their economies more competitive.
World Bank Vice President for Infrastructure Guangzhe Chen made the case that efficiency isn’t optional anymore.
“Energy efficiency is no longer optional—it is a necessity for countries seeking affordable and reliable energy for their people, while driving economic growth and creating jobs,” he said.
The report shows how efficiency can help countries manage rising power demand without breaking the bank on new power plants and transmission lines.
The biggest problem is that most countries are still running small pilot projects instead of launching the kind of large-scale national programs that would really move the needle. Political leaders often don’t understand the benefits, financing is hard to get, and reliable information about what works is scarce. Poor countries face the worst barriers because efficiency upgrades require upfront capital that’s tough to access.
Getting energy efficiency right requires governments, development banks, and private companies to work together on a much bigger scale than they’re doing now. The report argues that multilateral development banks and donor countries need to help client nations transition from small projects to national programs that can attract commercial financing and bring down costs for everyone.
