Energy efficiency is a key driver of clean energy transition. In the long term, it can help significantly mitigate the effects of climate change. In the short term, it offers solutions to protect us from heat, preserve warmth in cold periods, and shield our wallets from exuberant costs.
The Commission has launched a renewed commitment towards energy efficiency. It aims to increase citizen awareness about the benefits and possibilities energy efficiency offers to each one of us – and how it will increase our collective energy security while speeding up the transition to a climate-neutral economy.
Energy efficiency is about using less energy to perform the same tasks – whether it is heating a home, lighting a street, running industrial processes or transporting electricity across the grids. It helps maximise the output while minimising the resources used to achieve it. Energy efficiency applies everywhere: in homes, shops, office buildings, schools, hospitals, factories, transport, etc.
How it matters
Every kilowatt-hour we save is one we do not need to import or produce. Without the collective gains we have made in energy efficiency over the last 20 years, energy use in the EU in 2022 would have been 27% higher. This is equal to the combined, total annual energy consumption of France, the Netherlands, Austria and Finland.
Energy efficiency will cut the annual fossil fuel import bill by €33 billion by 2030.
Each 1% improvement we make in energy efficiency slashes EU gas imports by 2.6%. Moreover, energy efficiency is expected to deliver up to 40% of required CO₂ cuts by 2030.
In sum, as we improve energy efficiency, we lower our energy costs, fight climate change, and strengthen our energy independence. Choosing energy efficient solutions is smart, and strategic.
More efforts needed
Energy efficiency’s role in decarbonising our economy was recognised through the 2030 EU target to reduce final energy consumption by at least 11.7% by 2030.
While the EU’s overall energy consumption is already decreasing, we need to progress further.
In their National Energy and Climate Plans, EU countries have identified energy efficiency measures that would lead to an overall reduction in final energy consumption of 8.1% by 2030, instead of 11.7%. This means that for now, there is a gap between the energy efficiency gains we aim to achieve in the EU by 2030 and the energy efficiency gains that will be delivered.
What if we fail to reach the agreed objective?
If no new action is taken to bridge the energy efficiency gap, the EU will need to import an additional 60 million barrels of oil and 6 billion cubic meters of natural gas to cover consumption needs. And this instead of reducing its external energy dependency at the very moment of unprecedented geopolitical uncertainties.
We still have until 2030 to deliver on the ambition, so there is time for effective action!
Acting together - across all sectors
Achieving our energy efficiency goals is not the responsibility of the selected few. It requires shared commitment and action across all sectors. But - who are those key actors and what are their roles? To name a few
- National, regional and local authorities: the public sector is key in formulating and implementing energy efficiency policies
- Industries contribute to the common objective by adopting energy-efficient technologies and processes
- Financial institutions such as banks, green investment funds, pension funds or public investment banks provide essential funding mechanisms for energy efficiency projects
- Citizens play a critical role through daily behaviour and choices, such as using less heating (or cooling), choosing energy efficient appliances, etc
Energy efficiency at home
Energy efficiency is a no-brainer: it’s good for our wallets, for the climate and it makes our homes more comfortable!
Every step and action counts. Examples include
- switching to LED lighting
- using energy-efficient appliances like refrigerators, washing machines, dishwashers or TVs
- renovating your home to improve insulation or upgrading your heating and cooling systems
Energy efficiency pays off and help us to keep our bills under control - invest €1 in energy efficiency at home, get €12 back.
From October 2027, the public sector in EU countries will have to reduce its energy consumption by at least 1.9% every year, compared to 2021 levels.
They will do this by renovating buildings to make them more energy efficient and choosing energy-saving products and services when they purchase supplies, among other things.
This means cleaner and smarter energy use in our schools and kindergartens, universities, hospitals and other essential public services. The EU is supporting these efforts through dedicated funding programs across the Union.
By improving energy efficiency and cutting energy use, public authorities can free up resources for other important priorities and public services, while also helping to fight climate change.
A strategic investment for business and competitiveness
Improving industrial processes, upgrading equipment, and smarter energy use can significantly reduce energy bills – resulting in major annual savings. These measures also boost competitiveness and protect businesses from energy price volatility and supply disruptions. Every €1 spent on energy efficiency investments in industry, on average translates into €4 of savings on energy costs over the lifetime of the investment.
For example, recovering waste heat from industrial processes and using it within the same facility can cut energy consumption and greenhouse gas emissions considerably. For instance, between 2017 and 2022, 3 factories in Slovenia, Italy and Spain took part in an EU funded project that applied an innovative heat pipe technology for thermal energy recovery in industrial applications. Today, over 40% of their waste heat is being successfully reused.
By investing in energy efficiency, industry can increase cost-savings, strengthen its resilience and lead the way toward a greener and more competitive Europe.
Financial support is available
Renovating buildings to improve energy efficiency can be costly, and property owners may lack the necessary funds. To address these financial challenges and investment gaps, EU countries, the European Investment Bank (EIB) and the EU offer substantial support.
At EU level, several funding streams are available for building renovations. For instance, Cohesion Policy Funds have allocated approximately €25 billion to energy efficiency measures and investments, with around €17 billion specifically for enhancing the energy performance of buildings.
Moreover, the Commission, through the European Energy Efficiency Financing Coalition, will facilitate access to capital and provide financial incentives to support investments in energy efficiency.
At national level, one-stop shops and national support measures will assist in identifying appropriate financing options to enable smart and affordable energy efficiency upgrades.
When considering the purchase of a product, the cheapest option may not always be the most cost-effective in the long run. To support well-informed purchases, the Commission provides the European Product Registry for Energy Labelling (EPREL). This resource helps you compare and select products that offer the best combination of performance, energy efficiency and value.
One-stop-shops have already been pioneered in several regions and cities, with excellent results so far. Thanks to EU legislation, by October 2025 at the latest, all EU countries will make available one-stop shops for energy performance of buildings. Their aim is to make the energy renovation process easier, particularly for households affected by energy poverty and the worst-performing buildings, through consolidating resources for advice, financing, contractors and permits in one place. To help you get started, your energy bills/ the contract with your energy supplier will include the contact details for locating the relevant one-stop-shops in your country.