OECD: Energy-Efficient Firms Generate Up to 20 Times More Value Than Industry Peers

Companies that excel in energy efficiency generate nearly 20 times more added value than their less efficient counterparts operating within the same industry, according to a new study released by the Organisation for Economic Co-operation and Development (OECD), underscoring the growing economic importance of energy productivity amid persistent market volatility.

The OECD's latest research paper argues that improving energy productivity across industrial sectors could significantly reduce energy consumption and carbon emissions without compromising production levels, offering a pathway to both economic growth and climate goals.

Energy productivity refers to the amount of output or economic value a company produces for each unit of energy consumed. According to the study, the substantial disparity between high-performing and low-performing firms demonstrates that significant efficiency gains remain achievable even among businesses operating under similar market conditions and within the same sectors.

The findings come as businesses worldwide continue to navigate sharp fluctuations in energy markets. The OECD noted that energy prices tripled between 2020 and 2022 and remained roughly twice their 2020 levels throughout 2024. Global energy prices have since surged again, rising by 52% in March 2026 alone, intensifying pressure on manufacturers and industrial operators.

The report also highlights an unintended consequence of preferential energy pricing policies. Large industrial companies that benefit from energy tax exemptions, subsidies, or discounted rates may face weaker incentives to invest in energy-efficiency improvements because their operating costs are partially shielded from market pressures.

In contrast, smaller firms, which often bear higher energy costs, are more likely to pursue efficiency upgrades as a means of preserving competitiveness and protecting profit margins.

The OECD argues that policymakers should view energy productivity as a strategic economic lever rather than solely an environmental objective. By encouraging firms to use energy more effectively, governments can strengthen industrial competitiveness, reduce vulnerability to energy price shocks, and accelerate emissions reductions simultaneously.

As economies seek to balance growth, energy security, and decarbonization, the study concludes that improving energy productivity remains one of the most effective and cost-efficient tools available to achieve all three objectives.