Energy efficiency key to economy: report A new report shows Australia could reap an extra $26bn by 2030 if energy efficiency improved by 1%. IT'S often overlooked in discussions about climate policy, but a new report suggests even small improvements to energy efficiency could generate billions for Australia's economy. Research for the Climate Institute shows Australia could reap an extra $26 billion in revenue by 2030 if energy efficiency was improved by just one per cent. The climate think tank says there are plenty of opportunities for trimming back energy use in key economic sectors, far beyond switching off appliances or using efficient light bulbs. The Institute's John Connor said this simplistic approach to energy efficiency had been frustrating and part of the reason it was viewed as the "ugly duckling" of climate policy. "I think that it's one of the missing parts of the puzzle," he told AAP. These things do provide payback over time, it's just there are other priorities that generally crowd out an energy efficiency response. He said the link between energy efficiency and sustained economic growth was clear, and there were plenty of opportunities to streamline power use. Introducing performance standards for new equipment, implementing efficiency standards for new cars and retrofitting buildings would all help cut power usage and save cash. The report examined 30 years of data from nearly an equal number of countries, and found Australia was behind the mark when it came to investing in energy efficiency. The United States is already investing in this area at twice the rate of Australia, which has only seen a below par annual energy efficiency improvement of about half a per cent. Energy efficiency was a key part of Prime Minister Kevin Rudd's climate platform going into the 2007 election, but critics say initiatives weren't followed through as focus shifted to the carbon laws. Mr Connor urged the government to reignite interest in a national energy saving initiative, and bring us up to speed with our global partners. "We think there's a very strong case to get on with that as part of getting on with the climate response," he said. What this research does is beef up the economic argument for this as well.