Dozens of governments have agreed to place energy efficiency at the centre of global energy policy, aiming to shield households and businesses from price volatility and strengthen resilience following recent disruptions linked to the Middle East conflict.

The commitment was announced at the International Energy Agency (IEA) 11th Annual Global Conference on Energy Efficiency in Montreal, co-hosted by Canada, where ministers and senior officials said the war’s impact on global energy markets had underscored the urgent need to accelerate efficiency measures.

In a joint statement, countries said energy efficiency is one of the fastest and most cost-effective tools to reduce energy bills, improve affordability and enhance energy security. Governments called for stronger action across sectors, including buildings and data centres, alongside increased support for vulnerable households and small and medium-sized enterprises (SMEs), which are most exposed to energy price swings.

Participants also pledged to expand policies that ease short-term financial pressure while improving long-term resilience, and to encourage investment without excessive administrative burdens.

The COP31 Presidency announced it has commissioned the IEA to produce a special report to support the development of a potential global energy efficiency target for buildings, ahead of the COP31 summit in Antalya, Türkiye.

The conference also reviewed new IEA tools and analysis, including updated policy guidance, research on protecting consumers from energy price shocks and studies on business benefits from efficiency improvements. Officials reiterated the COP28 commitment to double the global rate of energy efficiency gains by 2030.

Governments said stronger international cooperation and implementation are essential to ensure energy efficiency delivers benefits for households, businesses and wider economic stability.

“As successive energy crises have shown, energy efficiency remains one of the most powerful tools available to governments for strengthening energy security, lowering costs and boosting economic competitiveness. Best of all, it is a resource that every country possesses in abundance,” said Fatih Birol, IEA Executive Director. “The commitments made in Montreal today demonstrate strong international resolve to put efficiency at the heart of energy policy and accelerate progress towards a more secure, resilient and sustainable global energy system. Just as the oil crises of the 1970s drove major improvements in the way energy is used, today’s crisis is set to serve as a catalyst for faster action on efficiency.”

“Canada is proud to work with international partners to advance energy efficiency as a cornerstone of resilient, affordable and competitive energy systems. At a time of global uncertainty, improving how we use energy is one of the most immediate and cost‑effective ways to protect households and businesses while strengthening our economy,” said  Tim Hodgson, Canada’s Minister of Natural Resources. “The commitments reaffirmed in Montreal underscore our shared determination to double efficiency progress by 2030 and to ensure that all Canadians – and partners around the world – benefit from lower energy costs, greater energy security and sustainable growth.”

“Energy efficiency is one of the highest-return investments an economy can make: lower costs for households and businesses, stronger energy security, and a foundation for long-term competitiveness,” said Julie Dabrusin, Canada’s Minister of the Environment, Climate Change and Nature. “Canada is building a climate-competitive economy that leads in the global transition to net zero, and today's commitment, alongside our international partners, advances that goal. Improving efficiency across every sector means real savings for Canadians and a more resilient economy for all of us.” -OGN/TradeArabia News Service