- 30-50% of costs for heavy industry come from energy consumption
- 25-45% reduction in energy use across aluminium, aviation, cement, plastics & chemicals, shipping and steel is achievable through energy productivity measures including longer product lifetimes and higher recycling rates
- A c.40%-60% reduction in “green premiums” for aviation and shipping is possible by combining energy productivity with decarbonisation
15 April 2026. Improving energy productivity can meet rising needs for housing, mobility and goods while reducing reliance on expensive fossil fuels and the need for new energy infrastructure, says a new report from the Energy Transitions Commission (ETC) and Mission Possible Partnership (MPP) published today.
Energy productivity measures the economic value generated from each unit of energy – improving it delivers the same (or greater) output from less energy. The report shows that more efficient ships, planes and industrial plants, using less material, using things for longer and recycling more can reduce the cost and complexity of decarbonising energy-intensive industries while strengthening industrial competitiveness.
Energy-intensive sectors, aluminium, aviation, cement, plastics & chemicals, shipping and steel, form the foundations of modern economies: our houses, transport and goods. Together, these sectors account for around a quarter of global energy demand.
By 2025, steel, aluminium, cement and plastics & chemicals demand is expected to grow 25%-100%, aviation 150%, and shipping 45%, driven by rising global prosperity, urbanisation and industrialisation. This growth could be delivered using 25-45% less energy and at lower cost, by improving energy productivity, compared to a scenario with no productivity gains, says the new briefing Harnessing energy productivity for industrial competitiveness.
