What is Energy Efficiency?
Using less energy to perform the same task or produce the same output. Energy efficiency improvements reduce both costs and carbon emissions, often providing quick payback periods.
Why it matters
Energy efficiency is the most cost-effective carbon reduction strategy available. Reducing energy consumption cuts both emissions and costs, and the savings compound year after year. It should be the first priority before investing in renewable energy or offsets.
Example
A food processing plant installs variable speed drives on its main production motors, reducing electricity consumption by 18%. The £25,000 investment pays back in 14 months through energy savings and avoids 32 tCO₂e per year.
Related terms
Scope 1 Emissions
Direct greenhouse gas emissions from sources owned or controlled by an organisation. Examples include emissions from company vehicles, on-site fuel combustion in boilers and furnaces, and refrigerant leaks from air conditioning systems.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.
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