Technology readiness: Reduced demand and improved energy efficiency

Current status of implementation and existing gaps

According to IRENA’s latest decarbonisation report, heavy-duty trucks represent 9% of the global vehicle stock but account for a quarter of all transport-related CO₂ emissions. The emissions from heavy-duty trucks are larger than those of the aviation and shipping sectors combined (IRENA, 2024b).

Since 2019, the emission intensity of new trucks has decreased by 14%, which is ascribed to increased efficiency measures, operational improvements and the increased share of biofuels in the fuel mix (IRENA, 2024b).

Examples and initiatives

Europe has introduced new CO₂ emission standards with the aim of ensuring that heavy-duty vehicle emissions are reduced by 45% by 2030 and 90% by 2040, compared with 2019 levels (IRENA, 2024b).

The US Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles, Phase 3, will be implemented in 2027 in an effort to reduce pollutant emissions from heavy-duty vehicles (IRENA, 2024b).

The International Council on Clean Transportation notes that eight countries have set a target for 40% trucks sales to be electric by 2050 (IRENA, 2024b).

Current status of implementation and existing gaps

The energy efficiency of ships has been steadily improving in the last few years owing to regulatory compliance measures. However, the International Energy Agency notes that the increased efficiency is due to bigger ships and speed reductions and not the adoption of energy-efficient technologies. In fact, the adoption of commercially available energy-efficient technology remains extremely low (IEA, 2025b).

Examples and initiatives

DNV notes that the adoption of energy-saving technologies relating to the propellor are well established, especially for container ships and bulk carriers (DNV, n.d.a).

Current status of implementation and existing gaps

Fuel efficiency in aviation has improved steadily over the past decade but requires an accelerated improvement rate to meet ICAO’s aspirational goal of 2% improvement per year. The continued improvement of energy efficiency measures and technologies is critical. Improved aerodynamics, weight reduction and the integration of more efficient engines, for example, can reduce energy demand and thus CO₂ emissions. Further reductions could come from a modal shift in short-distance travel, likely to rail transport.

Examples and initiatives

Airbus’s Revolutionary Innovation for Sustainable Engines programme aims to demonstrate engines that are 20% more efficient than the most efficient of today’s engines. The company plans to test the engines on an A380 aircraft by the end of the decade (Airbus, 2025a).

Current status of implementation and existing gaps

Scrap obtained via steel recycling is widely used as a metallic input for steel production, and this technology is well established. In 2023, over 630 million tonnes of recycled steel ²⁰ were used in global steel production, preventing almost 950 million tonnes of CO₂ emissions from the sector in the same year (BIR, 2024).

Examples and initiatives

Stiga Sports Arena in Sweden was designed using lightweight but high-strength steel trusses to reduce the overall volume of steel used in the construction (IRENA, 2023c).

Current status of implementation and existing gaps

The energy efficiency of chemical production improved by around 7% between 2018 and 2022 (Deloitte, 2024). Despite these efficiency improvements, the energy demand of the sector has increased. However, there is further potential to improve the efficiency of the sector using best available technologies such as motors, drives, heat pumps and digitalisation (Deloitte, 2024; IRENA, 2020)

Recycling plastics is a key enabler for reducing the need for feedstocks as well as reducing primary energy consumption in the chemical industry.

Examples and initiatives

The Yara Porsgrunn fertiliser plant in Norway replaced 2 500 motors with more efficient drivers. The switch resulted in an annual energy consumption reduction of 32-40 GWh and reduced emissions by 12-19 kt/year (ABB, n.d.)

Current status of implementation and existing gaps

Cement demand can be partially reduced by shifting to alternative materials (e.g. alternative binders) or increasing the use of a performance-based design that optimises concrete mixes. Although these approaches exist, awareness is low and building codes often remain prescriptive rather than performance based. France, Germany and India have adopted blended cement standards, encouraging the use of lower clinker ratios. However, the availability of high-quality supplementary cementitious materials (SCMs), especially fly ash and slag, is declining as industries like steel and coal phase them out, creating supply constraints (McKinsey & Company, 2020).

Examples and initiatives

Global companies like Holcim and Cemex are investing in artificial intelligence-driven systems to optimise kiln operations and reduce energy waste (GCCA, 2024).

The Indian cement industry, under the Bureau of Energy Efficiency, has implemented multiple waste heat recovery systems, significantly reducing energy consumption in cement plants (McKinsey & Company, 2020).

The LEILAC (Low Emissions Intensity Lime and Cement) project is an EU backed research and development initiative focusing on innovative kiln designs that reduce process emissions (GCCA, 2024).