The next global industrial race will be won or lost on electricity.

This shift will reshape the global economic power landscape. Coal, oil, and natural gas—endowed by geology—granted certain countries inherent advantages and left most regions dependent on transoceanic or pipeline-delivered fossil fuels. Solar and wind resources, by contrast, are far more widely distributed: Ember estimates that 97% of the world’s population lives in countries whose renewable energy potential exceeds their current electricity demand by more than tenfold. Yet converting this natural-resource potential into economic advantage hinges on each country’s ability to implement—and continuously improve—key capabilities: power generation infrastructure, grid systems, energy storage, skilled talent, energy market mechanisms, and governance institutions. In China, electricity already accounts for 28% of total final energy consumption; in the U.S., the figure is 22%, and in the EU, 21%. China’s industrial electricity intensity is also rising steadily. In 2024, factories manufacturing photovoltaic modules, batteries, and electric vehicles consumed over 300 terawatt-hours—roughly equivalent to Italy’s entire annual electricity use. China is simultaneously advancing both electrification and automation; Ember believes these two trends reinforce each other, accelerating progress in both domains. Europe possesses abundant renewable resources and has enacted some of the world’s most ambitious climate policies—but persistently high electricity prices continue to suppress domestic industry. The European Central Bank estimates industrial electricity prices rose approximately 53% between 2019 and 2024; industrial electricity consumption fell about 14.5% between 2019 and 2023. Europe is pursuing decarbonization, reindustrialization, and global competitiveness in emerging technology sectors—all at once. It cannot afford for high electricity prices to become a structural competitive disadvantage. Business executives now view electrification through the lens of competitiveness. A recent global survey of corporate leaders found: 90% expect their operations to be nearly fully electrified by 2035; 88% believe electrification will enhance their competitiveness; and 91% anticipate it will strengthen energy security. Yet 72% say government policy is advancing too slowly; 62% state they would consider relocating production overseas if insufficient policy support hinders their electrification transition. The pace of electrification will be a central topic at Climate Week NYC. Energy and electrification issues will permeate business and political agendas throughout the week. Turkey—the incoming host of the 31st Conference of the Parties to the UN Framework Convention on Climate Change (COP31)—has placed electrification at the heart of its priorities, setting a target for electricity to account for 35% of global final energy consumption by 2035. Two major obstacles stand out in accelerating electrification. First, grid bottlenecks: globally, over 2,500 gigawatts of renewable power plants, energy storage projects, and large electricity loads remain stuck in interconnection queues. Large-scale grid infrastructure typically takes 5–15 years to build. Second, financing: in emerging and developing economies, the capital cost of renewable energy and storage projects is at least double that in advanced economies. Even with abundant, low-cost renewable resources, those advantages remain unrealized if enterprises cannot connect to the grid and generate power. For this reason, governments’ next step must go beyond simply raising renewable capacity targets.

COP31 climate summit is approaching—why has ‘electrification’ become a key agenda item?

Chris Bowen, Australia’s Minister for Climate Change and Energy and COP31 Negotiating President, told the podcast ‘Zero’: “I hope the decision led by the COP31 Presidency delivers a strong outcome on electrification.” Such a decision requires unanimous approval from all participating countries. Ongoing wars in Europe and the Middle East have driven up oil and gas prices, forcing fossil-fuel-import-dependent countries—which collectively house three-quarters of the world’s population—to seek ways to reduce energy consumption and replace fossil fuels. Electrification is one such solution. As solar panel and battery costs continue falling, many countries are accelerating their transitions to electric vehicles and heat pumps. Bowen stated: “Electrification is unequivocally beneficial. Even if your grid relies on coal-fired power plants—and even if you don’t have rooftop solar panels—simply charging an EV using coal-grid electricity cuts emissions by roughly 60%.” Primary energy refers to energy forms as they exist in nature—for example, crude oil; final energy refers to the form in which energy is actually consumed—for example, gasoline or electricity; and useful energy denotes the portion of final energy ultimately converted into actual services—for example, propelling a vehicle or providing cooling. Although around 80% of global primary energy still comes from fossil fuels, only about 65% of global final energy originates from coal, oil, or natural gas. Thus, electrification is first and foremost an energy-efficiency solution: it reduces primary energy demand without diminishing the actual energy services people require. The COP31 electrification target gained further momentum after China signaled its support in October. As the world’s largest greenhouse gas emitter and largest manufacturer of power technologies, China’s backing carries significant weight. Bowen hopes to build on this foundation and raise the ambition level of the target. UN climate conferences typically propose voluntary goals, encouraging willing nations to take early and accelerated climate action. For instance, at COP28 in Dubai in 2023, countries adopted a goal to triple global nuclear power capacity by 2050. As of March this year, around 38 countries have expressed support—but global nuclear capacity has yet to show substantive growth. The COP28 Presidency’s final decision also included targets to double the global rate of energy efficiency improvements and triple renewable energy capacity by 2030.

Sabanci’s Zaimler Says COP31 Electrification Goal Within Reach

1 day ago

Sabanci Holding CEO Kivanc Zaimler affirmed Turkey's 35-by-35 electrification goal is achievable, outlining plans to electrify industrial processes like cement and reduce oil dependence via a $500 billion investment vision.

bloomberg

2026-11-11

Sabanci’s Zaimler Says COP31 Electrification Goal Within Reach

Sabanci’s Zaimler Says COP31 Electrification Goal Within Reach

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