The Energy Crisis and Energy Efficiency: What countries are doing to promote energy efficiency and where gaps remain

The conflict in the Middle East and the effects on the global energy markets highlights the vulnerabilities associated with dependency on fossil fuels and underscores the urgency of the green transition. Reliance on fossil fuels is not only polluting, but poses increasingly a risk to energy security and sovereignty (UN, 2026). The ongoing bottleneck in the Strait of Hormuz - where 20% of global oil supply passes - has led to sharp increases in global oil prices and supply volatility (IEA, 2026). In this context, energy efficiency has emerged as a strategic pillar of energy security. Stronger energy efficiency policies can reduce import dependency, buffer the impact of price shocks and accelerate the shift towards cleaner and more resilient energy systems.

Governments thus need to step up policies which promote more efficient energy use (OECD, 2026). OECD climate policy data provides a structured view on the evolution of policy adoption and stringency across 105 countries to illustrate key developments and highlight areas where governments can still ramp up climate action. This Data Explainer focusses on 13 energy efficiency policies, including minimum energy performance standards (MEPS), public financing mechanisms for buildings and industry (e.g. green mortgages, vendor credits), fuel economy standards and energy efficiency mandates for large emitters.

• Performance standards lead the way: MEPS for appliances (85 countries), energy efficiency mandates for large industrial emitters (76 countries) and building energy codes (75 countries) are among the most widely adopted measures, reflecting a strong regulatory push to improve energy efficiency.
• Information instruments are widely used: Appliance labels (74 countries) and customer information provision (65 countries) show that governments use softer tools to nudge consumer behaviours alongside regulation.
• Transport remains a weaker area: Fuel economy standards and labels for passenger cars are much less widely adopted than other energy efficiency policies. This gap matters in the current energy crisis, given that transport accounts for 45% of global oil demand (IEA, 2026).

• MEPS and labels for appliances have seen the strongest progress: MEPS and labels for appliances – including heating systems, freezers and air conditioners – have expanded steadily. By 2024, MEPS had been adopted by 80% of countries covered in the OECD data.
• Finance mechanisms have gained momentum: Financing for energy efficiency investment in buildings and industry has grown gradually, reaching around 60 countries by 2024, reflecting a shift toward investment mobilisation.
• Transport remains the least covered: Fuel economy standards and vehicle labelling remain among the least adopted policies, with limited uptake between 2010 and 2024, indicating significant scope for countries to further strengthen energy efficiency in the transport sector. These instruments often face resistance from manufacturers and require alignment with international vehicle markets and testing regimes, slowing down uptake.

• OECD countries, particularly in Europe, tend to have strong energy efficiency frameworks in place: Among them, MEPS, labels and building codes are widely adopted, underpinned by EU frameworks like the Ecodesign Framework, which has strengthened appliances standards.
• Significant gaps remain in Latin America, Southeast Asia and, particularly, Africa: These are also regions facing greater exposure to fossil-fuel supply shocks and stand to improve energy security by increased adoption of energy efficiency policies.

• RD&D funding remains volatile: Average RD&D spending for energy efficiency decreased since 2012, despite its critical role in driving innovation and strengthening energy security.

IEA (2026), "New IEA report highlights options to ease oil price pressures on consumers in response to Middle East supply disruptions", https://www.iea.org/news/new-iea-report-highlights-options-to-ease-oil-price-pressures-on-consumers-in-response-to-middle-east-supply-disruptions.

OECD (2026), OECD Economic Outlook, Interim Report March 2026: Testing Resilience, OECD Publishing, Paris, https://doi.org/10.1787/d4623013-en.

UN (2026), "Middle East crisis exposes global energy fault line as UN urges shift to renewables", https://news.un.org/en/story/2026/04/1167243.