COP31: Energy and Transport – Electrification takes center stage in Antalya

Day 2 of COP31 focused on energy and transport, with electrification, energy security, grid infrastructure and transport decarbonization taking center stage. Against a backdrop of climate pressures and recent disruption in global energy markets, new initiatives covering grids, finance and greener freight corridors signaled a push to accelerate electrification, with the COP Presidency declaring that the “age of electricity is taking shape”.

The Age of Electricity 

A headline COP31 initiative is the proposed "35-by-35 Global Electrification Pledge", which seeks to increase electricity’s share of global final energy consumption from approximately 23% today to 35% by 2035. The target reflects the level of electrification needed to remain on a pathway consistent with limiting global warming to 
1.5°C. The pledge calls for faster electrification across transport, buildings and industry, supported by renewable energy, stronger grids and increased storage capacity.

COP31 President of Negotiations, Chris Bowen highlighted that electrification supported by “clean power, stronger grids and storage” can improve energy access, strengthen energy security and reduce emissions across households, transport and industry. More than 180 companies, including Volvo, Uber and Siemens, representing approximately USD 1.69 trillion in annual revenues, have backed calls for faster electrification, highlighting growing private-sector support for the transition.

Why it matters: The proposed target could accelerate demand for clean electricity, grid infrastructure, storage and electrified technologies, creating opportunities for energy providers, manufacturers and investors. Businesses will also need to consider the implications for energy procurement, infrastructure investment and exposure to volatile fossil fuel markets.

Turning ambition into implementation

COP31 is seeking to translate its electrification ambitions into concrete action, with President Murat Kurum emphasizing the importance of accelerating the transition and building international momentum.

The inaugural Electrification Forum, co-hosted by the COP31 Presidency and the European Union, brought together governments, businesses and financial institutions to drive implementation beyond COP31. This will be supported by a Policy Toolkit and global tracking mechanism, alongside international support to help developing countries identify grid investment needs and access finance.

The Utilities for Net Zero Alliance (UNEZA) announced an increase in its members’ collective annual investment plans for grids, renewable generation and storage from USD 148 billion to USD 156 billion. This reflects the scale of infrastructure investment required to ensure that faster electrification is supported by additional clean generation, stronger electricity networks and storage capacity. 

A new Electrify Now Finance Coalition was also launched to help emerging and developing economies build investable project pipelines, reduce risks and address regulatory barriers. The World Bank and African Development Bank are expected to serve as its inaugural co-chairs in 2027. Alongside the coalition, USD 94 million of catalytic finance under the Climate Investment Funds’ AMPLIFi programme is intended to mobilize more than USD 1.2 billion for clean power, grids, storage and electrification projects.

Why it matters: The new financing and implementation mechanisms could help unlock investment in electricity networks, renewable generation and storage, particularly in emerging markets. For businesses and investors, they may create opportunities to develop and finance projects while highlighting the importance of grid capacity, regulatory frameworks and access to capital.

Global Green Freight Corridors 

COP31 has identified green freight corridors as part of its Energy and Transport day announcements.

The Global Green Freight Corridors Initiative (GGFCI) is a voluntary, country-led initiative aimed at decarbonizing international freight while strengthening the resilience and connectivity of global supply chains. 

The initiative aims to support lower-emission freight corridors across road, rail and maritime transport through cleaner technologies and fuels, digitalization, and improved cross-border connectivity, supported by investment and climate finance.

The next step will be to translate the initiative into specific corridors and projects. Participating countries are expected to identify potential pilot or demonstration corridors during the first half of 2027, with project development and investment mobilization following later in the year.

Why it matters: The initiative could create opportunities for logistics providers, port operators, transport businesses and infrastructure investors, particularly in cleaner freight technologies and supporting infrastructure. It may also encourage businesses to review their transport strategies and supply-chain emissions as greener freight corridors develop.

What happens next

The focus will now be on translating COP31's electrification ambitions into practical investment, infrastructure development and policy measures. Businesses should monitor how the new initiatives develop, particularly opportunities relating to clean power, electricity networks, storage, electrification finance and green freight infrastructure. They should also consider the implications for energy procurement, supply-chain resilience and exposure to future fuel price volatility. 

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