Energy Efficiency: Fast-Tracking Affordable Energy and Jobs – World Bank

Advancing Sustainable Development Goals through Global Energy Efficiency Initiatives

The Critical Role of Energy Efficiency in Achieving the SDGs

Energy efficiency is a foundational strategy for advancing multiple Sustainable Development Goals (SDGs). As a low-cost, transformative solution, it addresses global challenges related to energy access, economic stability, and climate action. Amid rising global energy demand, efficiency measures are paramount for achieving sustainable growth without overburdening energy infrastructure or increasing national debt.

• SDG 7 (Affordable and Clean Energy): Energy efficiency fast-tracks access to affordable, reliable, and secure energy for over a billion people, improving living standards and work conditions.
• SDG 8 (Decent Work and Economic Growth): Investments in energy efficiency yield a return of 3 to 5 dollars for every dollar invested, driving economic growth, creating green jobs, and fostering a skilled workforce.
• SDG 9 (Industry, Innovation and Infrastructure): By curbing demand, efficiency measures reduce the need for costly new energy infrastructure, allowing for more resilient and sustainable industrial development.
• SDG 11 (Sustainable Cities and Communities): Retrofitting public and private buildings improves living and working conditions, reduces urban energy consumption, and contributes to the creation of sustainable communities.
• SDG 13 (Climate Action): Reducing energy consumption is one of the most effective ways to lower greenhouse gas emissions and combat climate change.

Case Study: Türkiye’s National Strategy for SDG Alignment

Türkiye has demonstrated a strong commitment to leveraging energy efficiency as a tool for national development and sustainability, directly aligning with the SDGs. The country’s National Energy Efficiency Action Plans (NEEAP) serve as a model for integrating energy policy with broader sustainable development objectives.

1. First NEEAP (2017): This plan mobilized $8.5 billion in investments, resulting in 14% (24 million tonnes of oil equivalent) in primary energy savings. This achievement directly supported progress on SDG 7 by enhancing energy security and SDG 13 by reducing the national carbon footprint.
2. Second NEEAP (2024-2030): Türkiye is scaling up its commitment with a planned investment of over $20.2 billion. The goal is to achieve over 37 million tonnes of oil equivalent in savings across residential, commercial, industrial, and public sectors, further advancing SDG 7, SDG 9, and SDG 11.

Project Focus: Energy Efficiency in Public Buildings and Infrastructure (SDG 9 & SDG 11)

A World Bank-supported Energy Efficiency in Public Buildings Project in Türkiye has provided a blueprint for market development and infrastructure improvement. Implemented by the Ministry of Environment, Urbanization and Climate Change and the Ministry of Energy and Natural Resources, the project has built significant institutional capacity for large-scale renovations.

• Project Outcomes: Approximately 372 public buildings, including schools and hospitals, have been renovated.
• Impact on SDG 7: The renovations save almost 200 GWh per year and cut annual energy bills by $11.5 million.
• Impact on SDG 3 (Good Health and Well-being) & SDG 8: Nearly 80,000 people benefit from improved and healthier working conditions.
• Institutional Success: The Kandıra State Hospital, a project beneficiary, reported a nearly 20% reduction in its electricity bill between January and April 2025, with a target of 35% savings. These funds can be redirected to essential healthcare services, supporting SDG 3.

Fostering Decent Work and Economic Growth (SDG 8)

Energy efficiency is a significant driver of employment and economic opportunity globally. In 2022, the sector was the largest source of jobs in the energy field, employing nearly 11 million people. This directly contributes to SDG 8 by creating decent work and promoting sustainable economic growth.

• Türkiye: The public buildings project provided technical training to over 3,500 people, upskilling the workforce for green construction and energy service jobs.
• India: Energy Efficiency Services Ltd (EESL) has created nearly 700 direct jobs and thousands of indirect jobs in the manufacturing and deployment of efficient appliances.
• Latin America and the Caribbean: The Caribbean Efficient and Green-Energy Buildings Project will upgrade over 500 buildings while providing skills training and employment, with a specific focus on opportunities for women, thereby also supporting SDG 5 (Gender Equality).

A Call for Collective Action and Global Partnerships (SDG 17)

Unlocking the full potential of energy efficiency requires a concerted global effort, as outlined in the World Bank Group’s “LEAP” approach. This strategy emphasizes the need for strong partnerships between governments, multilateral development banks, donor partners, and the private sector to achieve the SDGs.

This collaborative framework aims to:

1. Place energy efficiency at the center of government policy and institutional planning.
2. Utilize technical assistance and financing to scale up small projects into national programs.
3. Send strong market signals to attract private sector investment, drive competition, and lower costs for consumers.

Initiatives like the World Bank’s Scaling Up Energy Efficiency Academy are crucial for fostering the global knowledge-sharing and institutional reforms needed to accelerate the transition to scaled-up national energy efficiency programs, embodying the spirit of SDG 17 (Partnerships for the Goals).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The entire article is centered on energy efficiency as a means to achieve “affordable and secure energy.” It discusses providing energy for lighting, cooking, heating, and cooling to over a billion people, directly aligning with the goal of ensuring access to affordable, reliable, and modern energy for all.

• SDG 8: Decent Work and Economic Growth

  The article explicitly states that energy efficiency can “boost economic growth and jobs.” It provides examples of job creation in the energy sector in Türkiye, India, and the Caribbean, and highlights the economic benefits, such as a high return on investment and savings on energy bills, which contribute to economic growth.

• SDG 9: Industry, Innovation, and Infrastructure

  The focus on renovating public buildings, upgrading hospital automation systems, and developing national programs to refurbish infrastructure (like the 500,000 public buildings in Türkiye) directly relates to building resilient infrastructure and upgrading industries for sustainability.

• SDG 11: Sustainable Cities and Communities

  The article details projects aimed at improving energy efficiency in public buildings within urban and community settings, such as schools, hospitals, and offices in Türkiye. This contributes to making cities and human settlements more inclusive, safe, resilient, and sustainable by reducing their energy footprint and improving living and working conditions.

• SDG 13: Climate Action

  By promoting energy efficiency, the article addresses a key strategy for climate change mitigation. Reducing energy consumption through efficiency measures directly curbs energy demand and, consequently, greenhouse gas emissions. The involvement of Türkiye’s “Ministry of Environment, Urbanization and Climate Change” and the integration of energy efficiency into national plans underscore this connection.

• SDG 17: Partnerships for the Goals

  The article is replete with examples of partnerships, including the collaboration between the World Bank and Türkiye, cooperation between different Turkish government ministries, and the call for collective action among multilateral development banks, donor partners, and the private sector to scale up energy efficiency programs.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.

   This is the most direct target. The article’s core theme is scaling up energy efficiency. It provides a specific example of Türkiye’s “first National Energy Efficiency Action Plan” which achieved “14% (24 million tonnes of oil equivalent) in primary energy savings,” demonstrating a tangible improvement in energy efficiency.

2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   The article connects energy efficiency with economic benefits, noting it can “yield a strong return on investment—3 to 5 dollars for every dollar invested.” The implementation of upgraded automation systems in hospitals and remote monitoring systems are examples of technological upgrading leading to increased productivity and efficiency.

3. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency…

   The “Energy Efficiency in Public Buildings Project” in Türkiye, which renovated 372 buildings and has plans for 500,000 more, is a direct example of upgrading infrastructure for sustainability and resource-use efficiency.

4. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   Türkiye’s creation and implementation of its “first National Energy Efficiency Action Plan” in 2017 and its new “2nd NEEAP” for 2024-2030 are clear examples of integrating energy efficiency—a key climate mitigation measure—into national policy and planning.

5. Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources…

   The article describes the World Bank’s support for Türkiye’s projects, the “Scaling Up Energy Efficiency Academy” for global knowledge-sharing, and the “LEAP” approach, which calls for a “concerted effort” among clients, donors, and the private sector. These are all forms of multi-stakeholder partnerships to achieve a common goal.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Energy Savings

   The article provides specific metrics for energy savings, which directly measure progress on energy efficiency (Target 7.3). Examples include: “14% (24 million tonnes of oil equivalent) in primary energy savings,” a future goal to “save over 37 million tonnes of oil equivalent,” and savings of “almost 200 GWh per year” from renovated buildings.

2. Financial Investment and Returns

   Progress can be measured by the amount of capital mobilized and the economic returns generated (Targets 8.2, 17.16). The article mentions: “$8.5 billion in investments” mobilized, plans to invest over “$20.2 billion,” and a return of “3 to 5 dollars for every dollar invested.” It also notes “$11.5 million in energy bills” saved annually.

3. Number of Jobs Created and People Trained

   This indicator measures the socio-economic impact (SDG 8). The article states that energy efficiency employed “nearly 11 million people worldwide” in 2022, provided “technical training to more than 3,500 people” in Türkiye, and created “almost 700 direct jobs and thousands of indirect jobs” in India.

4. Number of Buildings Renovated

   This is a direct indicator of infrastructure upgrades (Target 9.4). The article specifies that “about 372 buildings have been renovated” and that new projects will “upgrade over 500 buildings in Grenada, Guyana and St. Lucia.”

5. Number of People Benefiting

   This measures the social impact of the projects (SDG 11). The article notes that “Nearly 80,000 people now enjoy better working conditions in schools, hospitals, and offices.”

4. Summary Table of SDGs, Targets, and Indicators

Source: worldbank.org