Closing the electrification gap: Six priority actions to unlock investment

The global energy system is entering a decisive decade. Energy security and supply chain resilience have returned to the center of economic and industrial policy worldwide, and electrification is emerging as one of the most crucial levers to secure both.

Technologies available today could avoid EUR €260 billion/year in EU fossil fuel import costs by 2040 and have already displaced 1.2 million barrels/day of global oil demand through electric cars (EU Commission 2026; IEA 2026). Yet, electrification progress is lagging.

Businesses are clear on why: when asked what most enables transition investment, leaders cite policy support first (56%) (Business Breakthrough Barometer 2026).

This brief sets out six concrete actions to close that gap:

• Reform grid connection queues and permitting
• Remove distortions on electricity costs
• Incentivize storage and flexibility
• Build the infrastructure demand depends on
• Bridge the electric premium to build the market
• Provide capital support to de-risk conversion

With the COP31 presidency targeting 35% of final energy demand met by electricity by 2035, which is up from ~21% today, this is a roadmap policymakers, regulators, system operators and national planning authorities can act on now.