More than 100 companies, which together boast annual revenue of more than $1.5 trillion, have called on governments to ‘act with urgency to accelerate electrification’, and place electrification at the centre of economic and industrial policy.
The firms, which include ABB, Acciona, Coca-Cola Europacific Partners, Decathlon, E.ON, EDF, Enel, Fortescue, H&M Group, Hitachi, Iberdrola, IKEA, Levi Strauss & Co., Logitech, Mahindra Group, Nestlé, Oatly, Octopus Energy, Ørsted, Polestar, Roche, SAP, Scania, Schneider Electric, Siemens, Signify, SSE, Uber, Unilever, Vestas, Volvo Cars and more, added their signatures to a statement coordinated by the We Mean Business Coalition and the Global Renewables Alliance.
As the statement noted, businesses are currently navigating a period of ‘sustained geopolitical tension, market volatility and rising pressure on energy prices’, with a continued reliance on fossil fuel markets adding to market uncertainty and undermining competitiveness.
‘Common-sense solution’
‘Electrification powered by clean, locally-generated energy can provide an efficient, common-sense solution,’ the statement read. ‘Electrifying transport, buildings and industry is one of the fastest and most cost-effective ways to reduce exposure to fossil fuels and strengthen energy security. This can build more stable and competitive economies, lower energy prices over time, improve resilience to external shocks, and unlock new sources of growth.
‘Many of the technologies needed to electrify transport, buildings and industry are already commercially available, delivering the same or better services with greater energy efficiency and lower overall energy demand. We need to seize this opportunity and electrify now.’
The statement points to electrification scenarios outlined by the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), which suggest that electrification could account for around 35% of final energy use by 2035 if supported by the right policies.
It calls on governments to provide long-term policy certainty through commitment to electrification, as well as urging greater international cooperation through platforms such as the G7, G20, BRICS, IEA and UN climate COPs.
‘Loud and clear’
“After repeated fossil fuel shocks, businesses are saying loud and clear they do not want greater exposure to volatile fuel markets,” commented Maria Mendiluce, CEO, We Mean Business Coalition.
“They want faster electrification, stronger electricity systems and clear long-term policy signals that support investment. The countries that move fastest will be better placed to attract industry and investment, strengthen competitiveness and build resilience against future shocks.”
Supporting partners of the statement include WWF, E-Mobility Europe, Fashion for Climate, Mission Possible Partnership, Energy Efficiency Movement, Exponential Roadmap Initiative, REA and World Green Building Council. Read more here.
