Research provided by the Group of 20 (G20) Energy Transition Working Group (ETWG) suggests that energy efficiency measures could create massive employment opportunities as countries have their work cut out for them to reach emissions-reduction targets.

According to a virtual press briefing conducted by the Energy and Mineral Resources Ministry on Wednesday, work on energy efficiency would employ some 3.1 million people, thereby accounting for around 10 percent of all clean energy jobs up to 2030.

“Energy efficiency will be a lucrative sector that provides decent and sustainable jobs,” ETWG chairperson Yudo Dwinanda Priaadi told participants.

Noting that increased energy efficiency in the energy sector accounted for around 40 percent of total emissions reductions required to achieve targets under the Paris Climate Agreement, Yudo said it was the mandate for Indonesia’s G20 presidency to monitor the scale-up of energy efficiency.

As a result of this effort, member states had reached a consensus on energy efficiency pathways in the second round of ETWG discussions held in Labuan Bajo, East Nusa Tenggara, from June 23 to 24.

“I am pleased to inform you all that, in the last ETWG meeting, the importance of energy efficiency was addressed by many G20 members [...] as one of our key deliverables by the common principles in asserting energy transition,” he announced.

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Yudo admitted that drastic measures to cut emissions in some industries may have an impact on commercial capacity and competitiveness.

Therefore, it was paramount for energy efficiency measures to take into account the affordability and technological readiness to sustain enduring steps for carbon reduction.

“Just five industries contribute around 70 percent of global [carbon dioxide emissions from energy consumption], [...] namely cement, steel, aluminum, chemicals and oil refineries. Among those, cement and steel are the two largest carbon emitters," Yudo continued.

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Speaking at the same event, Energy and Mineral Resources Ministry Renewables Director General Dadan Kusdiana said energy efficiency measures would account for around 25 percent of the decarbonization process, around the same amount as renewable energy.

To maximize this potential, he said, Indonesia was committed to reducing energy intensity by 1 percent per year and achieving a final energy consumption reduction of 70 percent by 2025.

"[Energy efficiency] is driven by substantial efficiency gains in all and new sectors through, for example, fuel economy standards in transportation, highly efficient technologies to provide heat and steam in industry and a wide range of actions across the building sector," he said.

Dadan also mentioned that, to increase financing options for energy efficiency, which he deemed to be minimal at present, there should be more campaigns to highlight the benefits of getting involved in such projects.

"Significant efforts are required to make financial institutions more aware about energy efficiency financing and reduce the perception about the high risk [...]. This may require developing a system of assigning value to noneconomic benefits," he continued.

In the short and medium term, Dadan suggested, countries should introduce tax incentives and low-interest loans for energy efficiency projects to increase viability.

At the same time, he urged businesses to implement measures to improve production efficiency and thereby also lower their cost of production.

"I think now is the right time for us to do more energy efficiency projects [...] since now the prices of fossil [fuels] are very high," he said.

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