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Public Sector, Government Regulation Article, global energy demand
Article at a glance:

Curbing the growth of global energy demand

  • McKinsey research shows that the growth in worldwide energy demand can be cut in half or more over the next 15 years without reducing the benefits end users enjoy. The key is a concerted global effort to boost energy productivity.
  • This article’s exhibits examine the opportunities by focusing on four sectors that represent 98 percent of all end-user demand for energy. Capturing the full range of opportunities would save the equivalent of 64 million barrels of oil a day and help reduce greenhouse gases significantly. But market forces alone won’t produce these outcomes.
This article contains the following exhibits:
  • Exhibit 1: Removing subsidies—especially Russia’s subsidy on heat—would reduce energy demand significantly.
  • Exhibit 2: Opportunities to raise energy productivity in the commercial sector vary by level of economic development.
  • Exhibit 3: Removing 80% of fuel subsidies would reduce demand for road transportation fuel by 2.5 million barrels a day.
  • Exhibit 4: Significant opportunities exist for improving energy productivity in the US industrial sector.
  • Exhibit 5: Developing countries represent nearly three-quarters of the opportunities for energy productivity improvement identified in this study.
  • Exhibit 6: To capture the opportunities for improving energy productivity, it will be necessary to remove market inefficiencies.
  • Exhibit 7: Raising energy productivity around the world could help reduce greenhouse gas emissions.

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