Media Coverage

What is Electrification and Why Does it Matter?

To reduce carbon emissions, countries need to electrify. Global targets being negotiated at COP 31 are at the centre of the push.

The risks of sticking to fossil fuels are becoming harder to ignore. Climate change, conflict, oil crises and price shocks are among the factors contributing to current global instability. At the same time, countries are looking for ways to reduce greenhouse gas emissions and move towards cleaner energy systems.  

The word “electrification” is appearing more frequently in discussions about energy and climate. Here is what you need to know.

What is electrification?

In simple terms, electrification means converting devices, systems and sectors to be powered by electricity instead of directly burning fossil fuels. It is not simply about producing more electricity. It is about changing how we power our homes, transport, industries and economies – and increasingly using electricity as a source of energy for activities that currently rely heavily on fossil fuels.

Electrification is therefore an important pathway for reducing greenhouse gas emissions.

The shift is already happening at many levels. In buildings, for example, it can mean replacing gas boilers with electric heat pumps or gas stoves with induction cooktops. In transportation, it means electrifying passenger vehicles, public transport and freight.  

Some of the most difficult areas to electrify are the so-called “hard-to-abate” sectors, including steel, cement and chemical production. Heavy industry often requires extremely high temperatures, which have traditionally been produced by burning fossil fuels. New technologies, including industrial heat pumps, electric boilers and furnaces, offer alternatives in some applications.

Benefits

The potential benefits go beyond CO2 emissions.

One important benefit is cleaner air. Burning fossil fuels produces air pollutants that can harm human health and the environment. These pollutants are released both during the production and refining of fossil fuels and when they are burned – for example, in vehicle engines.

Electrification can also improve energy efficiency. Electric technologies can often provide the same services while using less energy than their fossil-fuel counterparts. For example, electric vehicles use energy more efficiently than conventional petrol or diesel vehicles, while heat pumps can provide heating with much less energy than many conventional heating systems.

There can also be economic benefits. The costs of renewable energy technologies, such as solar or wind power, have fallen rapidly, making clean electricity increasingly competitive in many parts of the world. According to the International Energy Agency, onshore wind was the most affordable energy source in 2024, followed by solar. Electrification can therefore support both emissions reductions and more efficient energy systems. 

What needs to change?

Ultimately, electrification depends on the electricity grid – the large network that moves electricity from where it is generated to where it is used.

As more homes, vehicles and industries switch to electricity, grids will need to handle much greater demand. This means expanding renewable electricity generation, such as wind and solar, while also developing ways to store electricity and to balance supply and demand as conditions change.

It also means upgrading the infrastructure people see in their communities, including transformers, substations and transmission lines.

The key point is that electrification only delivers its full climate benefits when the electricity being used comes increasingly from low-carbon sources.

Challenges ahead

The transition to electrification is already underway in many countries, but significant challenges remain.

First, electricity demand is growing rapidly. The expansion of electric vehicles, data centres and artificial intelligence, as well as industrial growth, is increasing pressure on electricity systems. Governments and energy providers need to expand infrastructure quickly enough to keep pace.

In some places, bureaucracy, financing challenges and low consumer adoption can slow the transition. And access to electricity remains deeply unequal. Globally, 655 million people lack access to electricity, with sub-Saharan Africa bearing a disproportionate share, at over 560 million people. For many countries, expanding access will require overcoming major financing, investment and institutional barriers, as well as political and economic instability.

International action

Electrification at the scale needed will require international coordination. The UN Climate Change Conference, or COP, provides an important forum for countries to work together on this transition.

At COP 31 in Antalya, Türkiye, increasing the role of electricity in national energy systems is expected to be an important part of discussions. A proposed “35 × 35” target would aim to increase electricity’s share of global energy consumption from around 20 per cent today to 35 per cent by 2035.

Global electricity demand is rising rapidly. How we meet this demand will help shape the future of our energy systems and our ability to tackle climate change.