Energy efficiency reduces the amount of energy required to provide products and services. Energy efficiency impacts commercial and residential operations and buildings in terms of insulation and caulking, HVAC, lighting, and more. Improvements in energy efficiency are most often achieved by adopting a more efficient technology or production process.
Improved energy efficiency reduces the amount of resources used, cost of energy used and emissions.
According to the International Energy Agency, improved energy efficiency in buildings, industrial processes and transportation could reduce the world's energy needs in 2050 by one third, and help control global emissions of greenhouse gases. Energy efficiency has also been referred to as energy conservation as both work towards reducing energy consumption.