Plugging the Energy Efficiency Gap with Climate Finance, OECD/IEA

Energy efficiency accounts for 44% of global GHG abatement potential in a 2°C scenario but receives a small share of climate finance, which is largely concentrated in emerging economies like China. The report suggests that multilateral development banks and bilateral financing institutions should scale up funding, particularly in low-income countries via grants and subsidies, to leverage private finance and address market barriers. Additionally, the IEA and OECD advocate for using the Green Climate Fund to establish an innovative financing framework for cost-effective energy efficiency actions in developing countries.

• Energy efficiency has a high potential for global greenhouse gas abatement but has seen slow development and receives a limited portion of climate finance, which is primarily focused on emerging economies such as China.
• Between 2008 and 2011, annual average finance for energy efficiency in developing countries from multilateral development banks was USD 4.9 billion, while bilateral financing institutions provided USD 18.9 billion in non-OECD countries in 2010.
• To address market barriers and mobilize private investment, the report recommends using climate finance in all developing countries, specifically through grants and subsidies in low-income countries and via an innovative framework through the Green Climate Fund.

APA

Ryan, L., Selmet, N., & Aasrud, A. (2012). Plugging the Energy Efficiency Gap with Climate Finance, OECD/IEA. Climate and Development Knowledge Network. https://cdkn.org/story/3-plugging-the-energy-efficiency-gap-with-climate-finance-oecdiea

Chicago

Ryan, Lisa, Nora Selmet, and André Aasrud. Plugging the Energy Efficiency Gap with Climate Finance, OECD/IEA. Climate and Development Knowledge Network, 2012. https://cdkn.org/story/3-plugging-the-energy-efficiency-gap-with-climate-finance-oecdiea.

Wikipedia

{{cite report |last1=Ryan |first1=Lisa |last2=Selmet |first2=Nora |last3=Aasrud |first3=André |title=Plugging the Energy Efficiency Gap with Climate Finance, OECD/IEA |publisher=Climate and Development Knowledge Network |date=2012 |url=https://cdkn.org/story/3-plugging-the-energy-efficiency-gap-with-climate-finance-oecdiea |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ryan2012plugging, author = {Ryan, Lisa and Selmet, Nora and Aasrud, André}, title = {{Plugging the Energy Efficiency Gap with Climate Finance, OECD/IEA}}, institution = {Climate and Development Knowledge Network}, year = {2012}, url = {https://cdkn.org/story/3-plugging-the-energy-efficiency-gap-with-climate-finance-oecdiea}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }