Significant slowdown in energy intensity improvement in 2020 (-0.4%, vs. -1.5%/year over 2000-2019)

Global energy intensity (total energy consumption per unit of GDP) dipped by 0.4% only in 2020, i.e. much slower than its historical trend (-1.5%/year on average between 2000 and 2019), widening again the gap with the 3.5%/year decrease required to achieve the 2°C scenario. This slowdown is mainly due to the economic recession in 2020, which had a negative impact on economic activity, but did not reduce energy consumption to the same extent (the economic downturn affected all sectors, such as services, not only the most energy-intensive). Energy intensity levels and trends differ widely across world regions, reflecting differences in economic structure and energy efficiency achievements. Since 2000, the USA and the EU have cut their energy intensity by around 2%/year thanks to energy efficiency efforts (especially in the power sector) and to a lesser extent to a structural shift toward less energy-intensive industry branches and the growing share of services in the GDP. In 2020, the improvement was much slower in the EU (-0.6%), whereas it accelerated in the United States (-4.2%). China’s energy intensity remained stable in 2020 (+0.4%, compared to a 2.9%/year improvement over the 2000-2019 period). In 2020, its energy intensity stood 43% below its 2000 level, still 27% above the world average. The high energy intensity in the CIS, the Middle East, China and some Asian countries (Taiwan, South Korea) is explained by the dominance of energy-intensive industries, commodity exporting-based economies and low energy prices that do not encourage energy efficiency. In 2020, energy intensity increased in Asia (especially in India and China, improving in other countries), in Australia, in the Middle East, in Africa (strong growth in Nigeria and South Africa, contrasting with improvements in Algeria and Egypt) and in Latin America to a lesser extent (increase in most countries except Mexico). On the contrary, energy intensity improved in Canada and Russia, though remaining much higher than the global average.