AUSTRALIA must dramatically improve its energy efficiency and productivity, new research has found.
An expert report prepared for the Climate Institute shows Australia's energy productivity lags far behind other developed countries across many sectors of the economy.
"In manufacturing, we're the second most inefficient of the OECD (Organisation for Economic Co-opeartion and Development) countries studied - and that's taking into account the high proportion of raw materials production,'' Climate Institute chief executive John Connor said.
The report found Australia had the third most energy hungry economy, after Canada and the US, and the third highest energy use for passenger kilometres travelled.
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