Energy efficiency has already cut Europe’s energy use by nearly 30% – Danfoss sees new gains for European competitiveness

Wednesday, July 1, 2026

A new analysis from the University of Oxford shows that energy efficiency has reduced Europe’s energy use by nearly 30% and strengthened the continent’s competitiveness. This was the message Danfoss brought to the IEA Global Conference on Energy Efficiency in Montreal.

Energy efficiency has already significantly changed Europe’s energy use – and there is potential for more.

This is the main conclusion of a new analysis, The Road to Energy Security, prepared by Professor Jan Rosenow of the University of Oxford, one of Europe’s most recognized researchers in energy policy and energy efficiency.

The analysis, which Danfoss has contributed to, shows that Europe today uses nearly 30% less energy than it otherwise would have without targeted investments in energy efficiency.
It also shows that the combination of energy efficiency, electrification and clean energy could reduce Europe’s gas demand by up to 70% by 2040. The potential corresponds to up to EUR 2 trillion in avoided spending on fossil fuel imports.

“This is one of the most overlooked competitiveness success stories of recent decades. We now need to apply the same logic to the areas where energy demand is growing fastest. The world is focused on producing more energy, but it is important to remember that one of Europe’s greatest competitive advantages has also come from using energy far more efficiently,” says Kristian Strand, President, Danfoss Climate Solutions.

Kristian Strand, President of Danfoss Climate Solutions, participating in a panel discussion during IEA Global Conference on Energy Efficiency in Montreal.

Danfoss brought this message to the International Energy Agency’s Global Conference on Energy Efficiency in Montreal on 29–30 June, where more than 600 participants from governments, business and finance gathered to discuss how energy efficiency could strengthen energy security, competitiveness and lower costs.

At the conference, Danfoss highlighted how the proven European experience could be applied to new high-growth areas of the energy system – not least data centers.

“Data centers are often seen as major energy consumers. We see them as an opportunity to build more efficient and competitive energy systems. The technologies already exist. What matters is that they are integrated from the start and scaled faster,” says Kristian Strand.

Facts from the analysis

Europe today uses nearly 30% less energy than it otherwise would have without energy efficiency measures.
Energy efficiency, electrification and clean energy could reduce Europe’s gas demand by up to 70% by 2040.
The potential corresponds to up to EUR 2 trillion in avoided spending on fossil fuel imports.