Abstract

Energy efficiency is one of the twin pillars of transition towards sustainable energy. Energy efficiency refers to the methods, technologies, and practices, which requires less energy to perform the same function. Energy efficiency not only saves energy but also reduces greenhouse gas emissions and dependence on fossil fuels. Energy-using activities across the world is substantially increasing due to economic development. Economic developments also trigger increase of energy consumption if extra measures are not taken. Energy efficiency can prevent the increase of energy consumption by uncoupling it from economic development. Germany is one of the leading countries in the world with the high-level of energy efficiency. Germany successfully limits the energy consumption growth by implementing a wide range of mechanisms. On the other hand, Malaysia, an emerging economy, sets to improve its energy efficiency by 20% by 2030 comparing to 2005. Despite Malaysia has initiated several policy measures, its current rates of progress in energy efficiency is not enough. This research work examines the energy efficiency policies of both Germany and Malaysia and figure out the major factors which brings about success for Germany. This work found that several policy support tools stimulate the increase of energy efficiency in Germany.