3 Sector objective: According to the IEA, annual energy productivity in industry will need to grow by 2.3% per year, and electricity would account for 30% of energy use by 2030 to achieve the goal of doubling energy efficiency.15 Industry accounts for around 38% of global energy demand and 21% of GHG emissions.16 In this report, it is defined as encompassing the production of commercial products, including “heavy” industry (steel, cement, chemicals, aluminium and extractives) and light industry (all others). Key policy enablers: The top three government actions that IBC members in industry have cited are: i. Building-in tax relief for investments in energy efficiency (e.g. faster equipment amortization); ii. Introducing minimum energy performance standards (MEPS) across industries. iii. Supporting collaboration between industry players. A full list of policy enablers recommended by IBC members is listed in Table 4. Industry TABLE 4 Inform Introduce energy efficiency labelling for machinery and processes. Create public benchmarks of expected energy efficiency levels by industry, to allow companies to gauge progress relative to peers, driving industry-wide action and awareness. Drive behaviour change by launching industry information campaigns on available technology and best practice. Invest in industry-specific upskilling and reskilling to help people adapt their skills for greener jobs, particularly for energy intensity reduction activities that are imperative for ensuring that the green transition creates prosperity for all. Regulate Introduce minimum energy performance standards (MEPS) across industries. Ensure economic and sustainability benefits are incorporated into the cost-benefit analysis for energy efficiency- related policies. Promote the uptake of energy management systems (EnMS), and energy measurement and management frameworks (e.g. ISO 50001). Mandate energy audits. Streamline permitting for energy efficiency projects. Support standards and regulatory changes on data-sharing between grids and industry. Incentivize Build-in tax relief on investments in energy efficiency – e.g. faster equipment amortization. Foster collaboration between industry players by providing targeted subsidies, grants or other market support mechanisms (e.g. offtake agreements). Support electrification of industrial processes/equipment such as motors and heat sources for low-heat processes, which is closely tied with an increase in renewable energy supply. Support sharing of infrastructure and district energy approaches. Support digital technologies and regulatory changes linking grids to industry that also reduce transmission losses. Promote procurement of lower-energy materials and products in government procurement processes – e.g. through carbon contracts for difference.Boost energy productivity of industryKey building blocks Note: Top enablers chosen by IBC in bold Transforming Energy Demand: Accelerating Business Action through Government Leadership 11

Transforming Energy Demand 2025