COP31’s $156 Billion Energy Push Raises Stakes for Global Electrification

A growing coalition of energy companies and global businesses are backing efforts to accelerate electrification worldwide, as the Utilities for Net Zero Alliance (UNEZA) raises its annual investment commitment in renewable energy, electricity grids and storage to $156 billion from $148 billion.

Alongside the investment increase, the COP31 Presidency has launched the Global Electrification Pledge, targeting a rise in electricity’s share of global final energy consumption from 23% to 35% by 2035.

The 35-by-35 goal is projected to extend electricity use to sectors still heavily dependent on fossil fuels, including transport, buildings and industry.

More than 180 companies, including Volvo, Uber, furniture company IKEA and Siemens, have backed the move to what the Presidency calls an “age of electricity”. The companies, brought together by the We Mean Business Coalition, have combined annual revenues of more than $1.69 trillion.

COP31 President Murat Kurum said the 2035 target would give countries a clear path to expand the use of electricity and cut their exposure to fuel price swings.

“The age of electricity is taking shape and COP31 will be remembered as the moment we flicked the switch,” Kurum said.

The target brings Africa’s electricity deficit to focus. Millions remain without access to power, while weak grid infrastructure limits supply to homes and businesses. Wider electrification will depend on major investment in power generation and distribution.

But expanding electricity use across major sectors will depend on investment in renewable power generation, stronger electricity grids, energy storage and infrastructure capable of meeting rising demand.

Tellingly, a new financing coalition announced by the COP31 Presidency aims to pool more investment into electrification in emerging and developing economies. The World Bank and African Development Bank will jointly chair it in 2027.

The COP31 Presidency is also setting up an Electrification Forum with the European Union to keep countries working together after the Antalya summit. The Presidency will chair the board overseeing its work, while the IEA will provide secretariat support.

For One Planet Agency