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

Energy efficiency represents 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. Market barriers hinder the scaling of funding in both developed and Developing Countries. The report advocates for increased funding from bilateral and multilateral development banks to leverage private finance and suggests using the Green Climate Fund to establish an innovative financing framework for cost-effective energy efficiency actions.

• Energy efficiency accounts for 44% of the global potential for greenhouse gas (GHG) abatement in a 2°C scenario, yet its development has been slow and it receives a small portion of total climate finance flows, which were estimated between 343-385 billion dollars in 2012. This finance is primarily concentrated in emerging economies such as China.
• Between 2008 and 2011, the IEA recorded that multilateral development banks provided an annual average of USD 4.9 billion for energy efficiency in Developing Countries, while bilateral financing institutions (BFIs) provided USD 18.9 billion in non-OECD countries in 2010.
• Market barriers in both developed and Developing Countries hinder the scaling of energy efficiency funding. The report suggests that bilateral and multilateral development banks could leverage private finance by increasing funding, especially in the poorest countries. It recommends using climate finance in emerging economies to mobilize private investment and in low-income countries via grants and subsidies, while supporting an innovative financing framework through the Green Climate Fund (GCF).

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} }