Pillar
Energy Efficiency

The main indicator (SDG 7.3.1 indicator) used in this report to track the efficiency target is the energy intensity of the economy, computed as ratio between total energy supply (in MJ) and gross domestic product (GDP), measured at purchasing power parity at constant 2021 US dollars.

Energy intensity is an imperfect proxy for energy efficiency. It can be affected by a number of factors, such as climate, structure of the economy, nature of economic activities, etc. - which are not necessarily linked to pure efficiency improvements.

 

Main indicator: energy intensity of the economy, computed as energy supplied to the economy per unit value of economic output (in megajoules [MJ] per USD 2021 at purchasing power parity [2021 PPP$])

Where:

  • Total energy supply (TES) (in MJ)

The total energy supply represents the amount of energy that is available in the national territory during the reference period. It is defined by the International Recommendations for Energy Statistics (IRES, https://unstats.un.org/unsd/energystats/methodology/ires/ ) as:

Total energy supply =

Primary energy production

+ Import of primary and secondary energy

- Export of primary and secondary energy

- International (aviation and marine) bunkers

- Stock changes.

  • Gross domestic product (GDP) (in 2021 PPP$)

GDP is the sum of gross value added in all the sectors of an economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. GDP is measured at purchasing power parity at constant 2021 US dollars.

  • Compound annual growth rate (CAGR) (in percentage)

The compound annual growth rate (CAGR) represents the average annual growth rate during a period of time. Negative values represent improvements in energy intensity (less energy is used to produce one unit of economic output), while positive values indicate worsening (more energy is used to produce one unit of economic output).

Where:

EIt1: energy intensity in year t1

EIt2: energy intensity in year t2