Policy principles to unlock electrification
María Mendiluce
Businesses are electrifying their operations, technologies and supply chains. But they can’t do it alone.
To seize all the advantages of clean electrification – energy security, lower energy bills, increased competitiveness and productivity – companies need governments to remove the barriers slowing action and disincentivizing investment. Barriers such as distorted pricing, skills shortages and permitting bottlenecks.
That is why we have set out 10 policy principles that identify key measures governments can put in place, and why they matter to business. Taken together, these can set the foundation for countries to seize the electric advantage.
The high-level policy principles provide a broadly applicable framework to support electrification across different geographies. They identify the enabling conditions for faster progress and complement our national and regional work with partners by providing a common foundation that can be adapted to local priorities.
In Europe, for instance, we’re coordinating closely with CLG Europe. They recently launched a statement signed by over 70 leading European companies and business groups representing the whole value chain, which underlines the urgency of accelerating electrification in Europe and aims to influence the forthcoming Electrification Action Plan (EAP). Expected in July, the EAP is a major opportunity to make electrification faster, less fragmented and more competitive in the EU.
One of the policy measures under consideration is an EU-wide electrification target – which aligns with the first of our 10 policy principles. We are advocating with CLG Europe for a target of 50% electrification by 2040, with flexibility in national delivery. Such a target would send clear signals and reinforce electrification as a core pillar of Europe’s competitiveness, resilience and decarbonization strategy.
The policy principles also help to provide clear linkages between what governments can do domestically and at the international level. They underline the importance of clear and consistent signals to help businesses understand the future direction of policy across different jurisdictions, reducing uncertainty and fragmentation.
With these principles as our guide, we’ll be supporting businesses to add their voices in support of the policy levers needed at every level. This includes building momentum around electrification at key international policy moments such as:
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The UN’s climate intersessional meeting in Bonn (8-18 June), which offers an opportunity to set the course towards COP31 and its expected focus on electrification.
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London Climate Action Week (20-28 June), where the Coalition is co-hosting the flagship Global Energy Transition and Electrification Summit on 23rd June, with the UK Department for Energy Security and Net Zero, E3G, and the Global Renewables Alliance – along with many other exciting events.
In the meantime, I encourage you to download and share the 10 policy principles.
This is a firm foundation on which to build our advocacy in support of delivering the greatest opportunity of the decade: clean electrification.