A set of business actions aimed at reducing the intensity of energy demand can unlock annual savings of at least USD 2 trillion a year for the global economy if measures are taken by the end of this decade, a new WEF study showed on Monday.
These targeted practical actions can also boost growth and cut greenhouse gas emissions.
Releasing the report ahead of its Annual Meeting in Davos from January 15-19, the World Economic Forum (WEF) said the right policy frameworks would unlock growth and productivity, save companies cash, deliver competitive advantage and reduce emissions.
The report was launched in collaboration with PwC and is supported by over 120 global CEOs who are members of the WEF's International Business Council (IBC), a group representing 3 per cent of global energy use.
In one of the most widely supported initiatives at United Nations climate change conference COP28, governments pledged to triple the world's renewable energy capacity by 2030 and double the rate of energy efficiency improvement over the same period.
Countries need to cut their energy intensity at least twice as fast between 2023 and 2030 as they did in previous years, which calls for substantial changes 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.