Why electrification is the climate game changer we need

Electrification means replacing equipment that burns fossil fuels with electric alternatives such as electric vehicles and heat pumps. The shift could cut emissions and improve energy efficiency, while reducing countries’ reliance on imported fuels and lowering energy costs over time.

The International Energy Agency estimates that faster electrification in fuel-importing countries could reduce their energy import bills by more than $400 billion by 2035 compared with 2025, and cut global oil demand by 18 million barrels a day. One in four cars sold globally in 2025 was electric, but electricity still accounts for about 20% of final energy use and would need to provide more than half by 2050 to limit global heating. Some sectors, including steelmaking, shipping and aviation, are harder to electrify, while grid investment needs to rise about 50% by 2030 from its current $400 billion a year.