Better energy use could save US $1.2 trillion

McKinsey Company have recently released a new report with a detailed analysis of the potential savings the United States in non-transportation areas.

Research has found that if the annual non-transportation consumption was reduced 23% by 2020 we could see a saving of $1.2 trillion on an investment of the $520 billion that would be required upfront. In addition this reduction in energy usage could see the equivalent of the entire US fleet of passenger vehicles and light trucks off the road which works out to 1.1 gigatons of greenhouse gas emissions.

The report also outlines five observations on how to best to pursue energy efficiency that would meet the range outlined in the report.

Recognize energy efficiency as an important energy resource that can help meet future energy needs while the nation concurrently develops new no- and low-carbon energy sources

Formulate and launch at both national and regional levels an integrated portfolio of proven, piloted, and emerging approaches to unlock the full potential of energy efficiency

Identify methods to provide the significant upfront funding required by any plan to capture energy efficiency

Forge greater alignment between utilities, regulators, government agencies, manufacturers, and energy consumers

Foster innovation in the development and deployment of next-generation energy efficiency technologies to ensure ongoing productivity gains

Source: McKinsey Company :: Unlocking energy efficiency in the U.S. economy

Of course we all know that as it might be nice to see this kind of savings we’ll never see it happen within the timeframe given in the report.