Even communication demands energy : just think of the data centres that provide several streams of information . All aspects of human activity require vast amounts of energy . This may sound intuitive .

However , the logical consequence of this simple fact is often overlooked : since human activity requires energy , energy demand will rise significantly as the population grows . In 2030 , eight years from now , it is projected that the world will be home to 750 million more people and in 2050 it is projected that the global population will have grown by nearly 2 billion people .

Adding to that , economic development and energy demand have historically been closely related . As we get richer , we consume more energy and vice versa . At the same time , energy access remains a crucial issue . Hundreds of millions of people – the majority in Africa – are right now deprived of access to basic energy infrastructure . A significant 13 % of the world population remains without electricity for lighting , communications , education , refrigeration or keeping cool . Our energy systems must be able to satisfy the expected and just demands for access to energy .

In sum , two interrelated and unavoidable trends mean that we can no longer neglect energy demand : global population growth , with rising incomes pushing up demand for energy services ; and many developing economies navigating an energy intensive

period of urbanisation and industrialisation . To understand why this blind spot in combating climate change occurred and how we can change it , let ’ s take a closer look at the misunderstandings that lie beneath the surface .

TWO MYTHS IN THE CLIMATE DEBATE DEBUNKED

Why do decision-makers continue to overlook the demand side of the green equation ? Two long-held political myths can explain this .

Myth number 1 : Economic growth and increasing energy demand are inseparable .

The first myth has its roots in the historical relationship between economic growth and energy use . There is a close correlation between the two as this paper demonstrates . However , this does not mean that lowering energy consumption by increasing energy efficiency will hinder economic growth .

First , the relationship between economic growth and energy consumption is not causal , but a two-way relationship . Higher energy consumption leads to higher economic growth . But the opposite is also true : higher levels of economic growth foster higher energy consumption .

Second , in the past we have managed to improve energy intensity ( a key measure of the economy ’ s energy efficiency ) while experiencing high rates of economic growth , and analysis suggests that we ’ re beginning to see a decoupling between the rates of economic growth and energy demand globally .

Third , climate change is a costly affair and delays in lowering emissions will only make it more expensive to do so in the

future . Extreme events like droughts and storms can cause long-term economic damages because of their impact on health and labour productivity .

Recent studies show that by 2100 , global GDP could be 37 % lower than it would be without the impacts of warming when taking the effects of climate change on economic growth into account . According to the IEA , without the global energy intensity improvements of the last two decades , emissions growth would have been almost double , or about 8 Gt per year higher in 2019 .

For households alone , enhanced efficiency and related avoided energy demand could help contribute to reducing global household energy bills by at least USD650-billion a year by 2030 in the Net Zero Scenario . Adding to this , higher investments to achieve these energy savings can support an extra 10 million jobs by 2030 in efficiency-related fields , such as new construction and building retrofits in addition to manufacturing and transport infrastructure .

In sum , it is possible to experience economic growth without a rise in emissions thanks to energy efficiency . Making our buildings , industries and transport more efficient does not make us poorer – on the contrary , according to the IEA ’ s Net Zero Scenario , where each unit of energy will deliver more than it does today , final energy demand can be around 5 % lower by 2030 but serving an economy 40 % larger .

Myth number 2 : The energy supply is green ; we don ’ t need to worry about increasing energy demand .

Wind turbines , solar panels and other renewable energy sources are being built on

still larger scales . This is indeed encouraging and necessary . We must substitute fossil fuels with renewable sources if we are to meet our climate goals . However , a common misunderstanding is that the significant increase in renewables means that we don ’ t need to worry about how we use energy . This is false for three reasons .

First , even though use of renewables is growing , they are not even close to replacing fossil fuels . In 2021 , the share of renewable technologies in total global energy supply was 11.9 %, a modest 0.2 % increase from 2020 . This slow growth was due to increasing global energy demand , the highest absolute increase in history as economies rebounded following Covid-19 .

Second , even if we assumed that most of our primary energy was green , energy efficiency is still necessary . In many areas electrification is only doable with high levels of energy efficiency . For instance , in the heavy vehicles used at construction sites , energy efficiency is key to reducing the size of batteries needed and therefore paving the way for large-scale electrification .

Furthermore , even in a scenario where we have electrified everything , we would still need energy efficiency because the production of renewable energy is fluctuating . When the wind blows and the sun shines , electricity supply is plentiful and cheap . Energy demand also has peaks . Generally , less energy is used at night when we are at rest , but in the morning and early evening demand spikes .

As we continue to scale up renewables , the gap between supply and demand is increasing during peak hours . Digitally enabled energy efficiency devices and