Fiscal Crisis Is IncentiveFor Energy Efficiencies, Report Says

The global financial crisis may provide more incentive for government investment in energy-efficiency programs, particularly in the world’s developing nations, according to a report from the McKinsey Global Institute. With energy demand expected to increase 65 percent in developing countries by 2020, these regions will account for nearly two-thirds of the world’s energy demand, compared with 51 percent today. According to the report, governments in countries such as China and India could productively invest as much as $90 billion annually over the next dozen years in energy efficiency — including fuel-efficient vehicles, improved building insulation, and more efficient lighting systems. The report said that by aggressively implementing energy-efficiency programs, developing countries could eliminate the need to spend roughly $2 trillion on new energy-generating projects, such as coal-fired power plants. Investments in energy efficiencies would also reduce fuel imports, lower building costs, and make governments less vulnerable to economic downturns, the report said.