Danfoss CEO Says Efficiency Key to Curb Demand

VERSAILLES -- Energy efficiency is a key tool to curb energy demand, ensure energy security and mitigate climate change, but it continues to be ignored in the net-zero narrative.

Danfoss President and CEO Kim Fausing is calling on the world’s energy and climate ministers to do more to implement and execute energy efficiency policies as a key tool to curb energy demand, ensure energy security and mitigate climate change.

Speaking at the International Energy Agency’s (IEA) 8th Annual Global Conference on Energy Efficiency in Versailles, France, Fausing reflected on the progress that has been made in the year since the conference was held in Sønderborg, Denmark, where the Sønderborg Action Plan was adopted.

Fausing said, “In Sønderborg a year ago we proved beyond doubt that the value of reducing energy demand, along with increasing supply, is an essential yet overlooked component of the energy transition. And we illustrated that it’s good for business too, with most solutions having payback times of less than three years.

“In fact, Dr Fatih Birol even called Sønderborg the global capital of energy efficiency. This was certainly a turning point, but now is not the time to rest. Rather it is the time to implement, execute and follow-up on energy efficiency and machine productivity.”

While global energy efficiency progress reached 2.2% in 2022, twice the average over the previous five years, this is still far short of the necessary 4 percent improvements needed annually for the period 2020-2030 for the world to reach the Paris Agreement climate goals. Global energy demand grew by 1% in 2022. Without progress on energy efficiency, the IEA states this would have been almost three times higher.

“The IEA has rightly called this decade The decade for action. Energy efficiency 2.0 means using electrification and sector integration to use our energy smarter, matching supply and demand. We know that excess heat – from supermarkets, data centers, industry, wastewater treatment plants – in the EU corresponds to the total energy demand for hot water in residential and service sector buildings. Yet, it’s mostly unutilized. Put simply, there will be no net zero future without energy efficiency.”

Danfoss engineers solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification. Its innovative engineering dates back to 1933. It is family-owned, employing more than 42,000 people, serving customers in more than 100 countries through a global footprint of 95 factories.

Find more at www.danfoss.com.