As industries take on the challenges of decarbonisation, safeguarding energy security, and managing rising costs – all while driving competitiveness – one solution stands out for its speed, affordability, and impact: energy efficiency. Often overshadowed by technologies like hydrogen or carbon capture, energy efficiency is increasingly recognised as the ‘first fuel’ of the energy transition – especially in energy-intensive industries such as downstream oil, gas, and petrochemicals.
With COP28 setting a global target to double the rate of energy efficiency improvements by 2030, and the International Energy Agency (IEA) confirming this as critical to achieving net zero by 2050, momentum is building. For downstream applications, which account for a significant portion of global industrial energy demand, the opportunity – and responsibility – to lead is substantial.
A strategic imperative for downstream
The oil, gas, and petrochemical industries remain some of the world’s largest industrial energy consumers, responsible for nearly 40% of global growth in energy demand in recent years. In a volatile geopolitical landscape, where energy affordability and security are front of mind, the ability to reduce consumption without compromising output is not just a sustainability issue but a matter of industrial resilience.
As explored in ABB’s latest whitepaper, Achieving the COP28 UEA Consensus, energy efficiency offers a high-impact, low-risk route to decarbonisation. The report explains that scaling up energy efficiency measures could free up over 10% of global energy capacity – the equivalent of adding vast new energy resources – without building any new infrastructure.
One of the most immediate wins lies in the electric motors that drive industry. Over 300 million motors are currently in use, yet only 25% are paired with variable-speed drives (VSDs). This leaves enormous untapped potential for energy savings.
Proven technologies, ready for deployment
Modern high-efficiency motors are already making a measurable difference. IE3 motors offer around 96% efficiency, while newer IE4 and IE5 models reduce energy losses by up to 20% compared to legacy systems. When correctly sized and applied, these motors can substantially cut operational costs and emissions.
The impact of VSDs is equally compelling. By adjusting motor output to match real-time demand, VSDs can typically reduce energy use by up to 25%. When coupled with digital tools such as real-time monitoring, analytics, and predictive maintenance, the gains are even more impressive.
ABB’s own audits of over 10 500 industrial systems worldwide revealed average energy savings of 43%. Among the 5900 systems that were prioritised and appraised, the total identified energy savings equated to 941 000 MWh/year – the equivalent of the annual consumption of nearly 92 000 US households.
Aligning policy and industry action
The policy landscape is evolving in support of these solutions. The IEA’s 10th Annual Global Conference on Energy Efficiency in Brussels, Germany, this week is focusing on shifting from awareness to implementation. It is set to underscore the importance of private-sector leadership, in collaboration with governments, to scale energy-efficient solutions rapidly.
In the EU, the updated Energy Efficiency Directive – a pillar of the Clean Industrial Deal – introduces stricter requirements for large energy users and offers a competitive edge to early movers. It is increasingly clear that energy efficiency is not an optional upgrade, it is a critical one.
To unlock the full potential of energy efficiency, however, more is needed. ABB is calling for clear, consistent policy frameworks, financial incentives, and tax relief to accelerate the adoption of efficient technologies. These are not subsidies for business-as-usual, but smart investments in industrial competitiveness and climate resilience.
The time to act is now
Energy efficiency is no longer a side conversation. It is a central pillar of the energy transition, particularly for sectors like downstream oil and gas where emissions are high and margins are tight. It delivers immediate returns, strengthens operational reliability, and contributes meaningfully to climate goals – all without requiring radical infrastructure overhauls.
As outlined in ABB’s whitepaper, the path forward is clear. The technologies exist. The business case is strong. And the policy landscape is aligning. Now, it is time for industry to match ambition with action.
By prioritising energy efficiency today, we lay the groundwork for a more sustainable, secure, and competitive tomorrow.