The world could cost-effectively increase electricity's share of final energy consumption to 33% by 2035 from 23% currently, putting a proposed global electrification target of 35% within "striking distance," the International Energy Agency said in its report on Tuesday.
The report, prepared at the behest of Turkiye, Australia and the COP31 President examines the potential for faster electrification globally and its implications for energy security and climate goals.
According to the IEA, faster electrification could cut energy import bills for fuel-importing countries by over $400 billion by 2035, compared to their respective 2025 levels, while reducing global oil consumption by 18 million barrels per day, merely with the adoption of electric vehicles.
They also noted that such a scenario could help cut down Co2 emissions by 40%, while highlighting the need for policymakers to address risks, including concentrated supply chains for key technologies and critical minerals, cybersecurity threats, natural disasters and climate hazards.