Energy efficiency is recognized as one of the main lines of action necessary to stabilize the concentration of greenhouse gases (GHGs) in the atmosphere and thus to limit climate change. In principle, energy efficiency is highly cost-effective and easily deployed through existing technologies. Yet actual investments in energy efficiency fall short of what is required. This note of the Evaluation Cooperation Group summarizes available evidence on barriers to energy efficiency and the interventions to surmount them from evaluations of the World Bank Group, Asian Development Bank, European Bank for Reconstruction and Development and the Global Environment Facility (GEF). An assessment of the evidence suggests that:

• Energy efficiency investments are highly cost-effective
• Fossil fuel subsidies discourage energy efficiency
• The financial sector can be persuaded to provide energy efficiency loans
• Genuine demonstration projects can transform marketsBiases against energy efficiency projects can be overcome
• Monitoring of impacts needs to be improved

This paper will be presented at the United Nations Climate Change Conference on 28 Nov-9 Dec 2010 in Durban, South Africa by Rob van den Berg, Director of the Evaluation Office of the GEF.

The Evaluation Cooperation Group is dedicated to harmonizing evaluation work among multilateral development banks. Its members are the evaluation departments of the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Monetary Fund, and World Bank Group. Sitting as observers are the evaluation departments of the Council of Europe Development Bank, International Fund for Agricultural Development, Islamic Development Bank, Organisation for Economic Development, and United Nations.

Please access the note below and at the Evaluation Cooperation Group website.

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