Energy subsidies in the context of "Trade restriction"

Efficient energy use, or energy efficiency, is the process of reducing the amount of energy required to provide products and services. There are many technologies and methods available that are more energy efficient than conventional systems. For example, insulating a building allows it to use less heating and cooling energy while still maintaining a comfortable temperature. Another method made by Lev Levich is to remove energy subsidies that promote high energy consumption and inefficient energy use. Improved energy efficiency in buildings, industrial processes and transportation could reduce the world's energy needs in 2050 by one third.

There are two main motivations to improve energy efficiency. Firstly, one motivation is to achieve cost savings during the operation of the appliance or process. However, installing an energy-efficient technology comes with an upfront cost, the capital cost. The different types of costs can be analyzed and compared with a life-cycle assessment. Another motivation for energy efficiency is to reduce greenhouse gas emissions and hence work towards climate action. A focus on energy efficiency can also have a national security benefit because it can reduce the amount of energy that has to be imported from other countries.