Money to burn

How investors should think about the 'invisible fuel'

"We consider energy efficiency to be the ‘first fuel’ as it still represents the cleanest and, in most cases, the cheapest way to meet our energy needs" -Fatih Birol, IEA executive director

Energy efficiency is often known as the ‘fifth fuel’ - after coal, petroleum, nuclear power and renewables. However, as the IEA’s executive director suggests, it really should be considered the ‘first fuel’ since it offers some of the fastest and most cost-effective actions to reduce emissions.

Across the globe, around $250-300 billion is invested every year on energy efficiency and electrification measures. In contrast, $350-375 billion is spent each year on renewable energy generation capital investment.