The time is now: A plan for energy efficiency in industry.
ABB Advocates for Urgent Action on Industrial Energy Efficiency
A new report from ABB, “Achieving the COP28 UAE Consensus – The vital role of high-efficiency motors, and drives in net energy addition and lower emissions globally,” underscores the urgent need for energy efficiency improvements in industry, particularly in light of rapidly increasing energy and electricity demand.
- ABB leaders will advocate for scaled-up action at the IEA’s (International Energy Agency) conference on energy efficiency in Brussels.
- The company calls for increased public and private investment, alongside effective legislation, to accelerate the adoption of energy-efficient solutions.
- High-efficiency motors, variable speed drives, and digital technologies are highlighted as key solutions for helping industry become more competitive, resource-efficient, and sustainable.
The report, released on June 3rd, highlights the scale of the challenge facing the global industrial sector and emphasizes the importance of industrial energy efficiency in meeting growing energy demand while strengthening energy security, affordability, and industrial competitiveness. 45 percent of the world’s electricity is converted into motion by industrial electric motors, making energy efficiency in this area a critical part of the solution.
The report is being presented to global decision-makers at the IEA’s tenth annual global conference on energy efficiency in Brussels on June 12–13. It identifies significant untapped potential for energy efficiency in the industrial sector. The rapid adoption of higher efficiency motors, motors with variable speed drives, insights from energy audits, and optimized digitalization and connectivity are identified as key goals for industry. Greater investment and clear regulations are also needed to facilitate the scaling up of key technologies that promote the energy transition.
In 2024, global energy demand increased by 2.2 percent, exceeding the global average of the last decade. Nearly 40 percent of this growth was driven by the industrial sector, while electricity use in industry increased by 4 percent. Despite these significant increases, the energy efficiency of motors and drive systems has been neglected compared to other sustainable energy solutions.
ABB is urging policymakers to increase collaboration with the private sector. Policymakers must encourage industry to adopt efficient technologies through incentives, subsidies, and tax breaks to meet the growing and unforeseen demand on energy grids from data centers and AI.
Erich Labuda, head of ABB’s Motion Services division, stated:
“Around the world, increasing energy demand, pressure from climate change, and geopolitical instability are converging, leading to an urgent need for smarter energy use. Energy efficiency is one of the most powerful, yet underutilized, tools we have to address these global challenges. Energy efficiency reduces emissions, strengthens energy security, and promotes resilience in industry – all with technologies that are available today. We are pleased to present a report that outlines how we can return over 10 percent of energy capacity to the grid without having to spend trillions of dollars on new infrastructure costs.”
He added:
“Proven solutions, including high-efficiency motors and drive systems, are already delivering double-digit energy savings. With payback times of just seven months, the business case is clear. Now is the time to scale up. Our report highlights that doubling the rate of energy efficiency improvements to 4 percent per year until 2030 could deliver one-third of the emissions reductions needed for net-zero – equivalent to China’s annual energy consumption.”
Labuda concluded:
“Energy efficiency is not an optional upgrade – it is crucial. Energy efficiency not only increases energy independence but also stimulates economic growth, making these solutions clear and sensible choices.”
The report demonstrates the extent of the impact that energy-efficient technology can have on industry, including rapid return on investment and more efficient operation in the long term.
From November 2024 to May 2025, ABB examined over 10,500 industrial electric motor-driven systems. Of these, 5,900 systems were prioritized and assessed. Average energy savings of 43 percent were identified, equivalent to approximately 941,000 MWh or the annual energy use of 91,715 U.S. households.
There are over 300 million electric motors in operation globally, and significant energy and carbon savings can be achieved by utilizing modern high-efficiency technologies. A range of solutions can deliver significant savings – IE3 motors can achieve approximately 96 percent efficiency, IE4 motors go further and can reduce energy losses by an additional 15 percent, while IE5 motors are even more efficient with 20 percent lower losses compared to IE4. By selecting the right size motor depending on the application, efficiency in industry can be improved even further.
Even greater savings are possible with variable speed drives (VSDs), which optimize motor operation by adjusting speed and torque to match load requirements, typically reducing energy consumption by 25 percent. Today, only 25 percent of industrial motors use VSDs, so there is a significant opportunity to cut global energy consumption by up to 10 percent through greater adoption of high-efficiency motors and VSDs.
About ABB
ABB is a global leader in electrification and automation technology, enabling a more sustainable and resource-efficient future. By combining its expertise in engineering and digitalization, ABB helps industries perform at a consistently high level, while becoming more efficient, productive, and sustainable and can increase their competitiveness. At ABB, we call this “Engineered to Outrun.” The company has over 140 years of history and approximately 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).
ABB Motion
ABB Motion, a global leader in motors and drives, is at the heart of accelerating a more productive and sustainable future. We invent and push the boundaries of technology to contribute to energy-efficient circular solutions with low carbon emissions for customers, industries and society. With our digitally connectable variable speed drives, motors and services, our customers and partners achieve better performance, safety and reliability. To help the world’s industrial companies become competitive – more resource-efficient and sustainable, we provide motor-driven solutions to many different types of applications in all industry segments. We build on our in-depth expertise with over 140 years in the field of electrical drive line solutions and over 23,000 employees in 100 countries and learn and get better every day.
[1] IEA’s report “Energy-Efficiency Policy Opportunities for Electric Motor-Driven Systems”
[2] International Energy Agency, Global Energy Review 2025: Key Findings, 2025
[3] Data based on ABB’s energy assessments conducted between November 2024 and May 2025
ABB Sweden
Christine Gunnarsson
Press Manager
+46 72 461 20 00
press@se.abb.com
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