Making homes, vehicles, and businesses more energy efficient is seen as a largely untapped solution to addressing global warming, energy security, and fossil fuel depletion. Many of these ideas have been discussed for years, since the 1973 oil crisis brought energy issues to the forefront. In the late 1970s, physicist Amory Lovins popularized the notion of a "soft energy path", with a strong focus on energy efficiency. Among other things, Lovins popularized the notion of negawatts—the idea of meeting energy needs by increasing efficiency instead of increasing energy production.

The state of California began implementing energy-efficiency measures in the mid-1970s, including building code and appliance standards with strict efficiency requirements. During the following years, California's energy consumption has remained approximately flat on a per capita basis while national U.S. consumption doubled. As part of its strategy, California implemented a three-step plan for new energy resources that puts energy efficiency first, renewable electricity supplies second, and new fossil-fired power plants last.

Still, efficiency often has taken a secondary position to new power generation as a solution to global warming in creating national energy policy. Some companies also have been reluctant to engage in efficiency measures, despite the often favorable returns on investments that can result. Lovins' Rocky Mountain Institute points out that in industrial settings, "there are abundant opportunities to save 70% to 90% of the energy and cost for lighting, fan, and pump systems; 50% for electric motors; and 60% in areas such as heating, cooling, office equipment, and appliances." In general, up to 75% of the electricity used in the U.S. today could be saved with efficiency measures that cost less than the electricity itself. The same holds true for homeowners, leaky ducts have remained an invisible energy culprit for years. In fact, researchers at the US Department of Energy and their consortium, Residential Energy Efficient Distribution Systems (REEDS) have found that duct efficiency may be as low as 50-70%. The US Department of Energy has stated that there is potential for energy saving in the magnitude of 90 Billion kWh by increasing home energy efficiency.^[6]

The Vienna Climate Change Talks 2007 Report, under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC), clearly shows "that energy efficiency can achieve real emission reductions at low cost."^[7]