Economies such as the European Union, the United States, Canada and Japan have introduced minimum energy performance standards (MEPS) for industrial electric motors. These require that all motors are switched to IE3 or higher in the international efficiency (IE) standards. This was supported by a dedicated finance window, which was developed to target the replacement of older and inefficient motors by supporting the initial upfront cost. This drove an increase in penetration of high-efficiency motors from 5% in 1995 to over 70% in 2015, contributing to an approximate 20% reduction in energy consumption in the Japanese manufacturing sector between 2000 and 2012.12CASE STUDY I Public sector action in National Planning (minimum standards) Regulate Provide clear guidelines through minimum standards, mandated energy audits and inclusion of energy efficiency into green certification programmes. Provide clear guidance for monitoring, reporting and measuring against energy intensity standards. Promote standardized labelling at the product level to expand the green product market, harmonized within or across regions, and promote competition. Reform labour market frameworks to ensure businesses can easily transform the workforce to achieve goals in a more energy efficient manner. Incentivize Pair tax and incentive mechanisms in the key sectors (buildings, industry and transport), including support for SMEs. Within EMDEs, support incentives for building up domestic capacity for energy efficiency-related light manufacturing and service providers. Remove negative subsidies/incentives that hamper business’s energy efficiency efforts. All incentive schemes (e.g. certification and finance) should be broad and linked to outcomes. The goal is to create a level playing field for all approaches. Incentivize targeted reskilling initiatives to ensure that companies have the critical talent they need to implement their sustainability plans and unlock the potential for transitioning mature sectors as well as new growth sectors.TABLE 2 Energy transition planning: What governments can do (continued) Note: Top enablers chosen by IBC in bold Transforming Energy Demand: Accelerating Business Action through Government Leadership 9

Transforming Energy Demand 2025