The National Bank of Belgium has published a study finding that Belgian manufacturing consumes about one-sixth less energy than at the turn of the century, despite a slight increase in industrial activity. The decline primarily reflects a shift toward less energy-intensive sectors, particularly pharmaceuticals, and away from energy-intensive industries such as chemicals, iron and steel. Energy-efficiency improvements played a smaller role and were concentrated in a limited number of sectors. The decline has accelerated in recent years as the energy price shock following Russia’s invasion of Ukraine, international competition and global overcapacity reduced capacity utilization in energy-intensive industries, particularly chemicals. The study distinguishes efficiency-led reductions, which preserve output while lowering emissions and fossil fuel dependence, from reductions caused by lost industrial capacity, which may shift production and emissions abroad. Further efficiency gains could come from improved processes, energy management, equipment and electrification, especially heat pumps for low-temperature heat. Adoption remains constrained by electricity prices relative to natural gas, grid limitations and process-conversion costs, pointing to a role for targeted information, technical support, investment incentives and infrastructure.
2026-09-02National Bank of Belgium
National Bank of Belgium study finds structural change drove one-sixth decline in manufacturing energy use
A National Bank of Belgium study finds that manufacturing energy use has fallen by about one-sixth since the turn of the century, mainly because activity shifted toward less energy-intensive sectors rather than through broad efficiency gains. Recent declines also reflect pressure on energy-intensive industries, while high electricity prices, grid constraints and conversion costs continue to impede electrification.