New global ESCO market report from UNEP’s Copenhagen Climate Centre

The Global ESCO Market 2025 Report from the United Nations Environment Programme’s Copenhagen Climate Centre and the Global ESCO Network provides a comprehensive overview of the status, challenges, and opportunities in the energy service company (ESCO) sector across more than 25 countries. It captures developments not only in the largest and most mature markets, but also in emerging economies where ESCO models are beginning to gain traction. The report synthesises key trends, market developments, and policy landscapes shaping the industry in areas such as activity levels, financing, policy, and technology.

The report finds that ESCO markets remain highly uneven in terms of maturity, scale, and innovation. The majority of ESCO activity – measured in number of projects, investments, and reported energy savings – is concentrated in a handful of countries, including the United States, China, Taiwan (PRC), and several EU member states. These countries have well-established regulatory frameworks, access to finance, and capacity for implementation. In contrast, many developing and emerging markets report minimal ESCO activity, due largely to weak policy support, limited financial mechanisms, and lack of technical awareness.

The analysis was conducted as a 24-point questionnaire distributed to ESCO associations and other national reprresentatives with insights into the national ESCO markets.

The central findings from responses received are:

• Access to finance remains the most commonly cited barrier to ESCO market growth, followed by low client awareness and lack of standardisation in contracts and M&V protocols.
• Public buildings are the most frequent target of ESCO projects globally, while sectors like commercial buildings, industry, and energy supply remain underutilised.
• Project types and savings levels vary widely. Integrated, system-level retrofits tend to generate the highest energy savings but require greater investment and institutional support.
• Policy frameworks are essential for enabling ESCO markets. Countries with strong mandates, incentives, and technical assistance programmes have seen significantly more progress.

The report is available here.