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Economics, Business & Work 2026-09-23 00:00 UTC edition Story 32 of 24 Gate: passed

IEA Report Outlines Global Electrification Strategy to Reduce Fossil Fuel Reliance

Accelerated electrification could meet one-third of global energy demand by 2035 while cutting oil use and reducing import bills by $400 billion.

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The Push for Accelerated Electrification

The International Energy Agency released a report showing that electricity could cost-effectively meet 33% of the world's final energy consumption by 2035, up from 23% currently. This acceleration offers fuel-importing nations a path to shield their economies from volatile fossil fuel markets while advancing climate goals.[1][2]

Prepared at the request of Türkiye and Australia for COP31, the analysis arrives as countries consider adopting a global electrification target of 35%. Recent trends support this direction, as global electricity use has grown faster than economic output and nearly twice as fast as overall energy demand.[3][4][5]

The financial and environmental incentives are substantial. Fuel-importing countries could reduce their energy import bills by more than $400 billion by 2035 compared with 2025 levels. Additionally, faster electrification could reduce global oil use by 18 million barrels per day by 2035, while cutting carbon dioxide emissions from transport, buildings, and industry by 40% over the same period.[6][7][8]

As the IEA notes, "Electricity is taking on an increasingly central role in economies around the world." However, policymakers still face unresolved questions regarding the specific policy mechanisms needed to manage upfront costs for households and businesses.[1]

Key takeaways

  • Electricity could cost-effectively meet 33% of global final energy consumption by 2035, up from 23% today. 1 source
  • Faster electrification could reduce global oil demand by 18 million barrels per day by 2035, primarily through EV adoption. 1 source
  • CO2 emissions from transport, buildings, and industry could fall by 40% by 2035 under an accelerated electrification scenario. 1 source
  • Policymakers should prioritize scaling investment in generation and grids while implementing flexible power systems to manage the transition. 1 source

Notable quotes

“Electricity is taking on an increasingly central role in economies around the world.”

What’s unresolved

  • Specific policy mechanisms for managing upfront costs for households and businesses.

Citations

  1. [1] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Electricity could cost-effectively meet 33% of the world's final energy consumption by 2035. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  2. [2] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Global final energy consumption met by electricity is currently 23%. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  3. [3] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security The IEA prepared a special report on electrification at the request of Türkiye and Australia for COP31. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  4. [4] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Countries are considering the adoption of a global electrification target of 35%. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  5. [5] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Global electricity use has grown faster than economic output and nearly twice as fast as overall energy demand in recent years. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  6. [6] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Fuel-importing countries could reduce energy import bills by more than $400 billion by 2035 compared with 2025 levels. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  7. [7] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security Faster electrification could reduce global oil use by 18 million barrels per day by 2035. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP
  8. [8] Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security CO2 emissions from transport, buildings, and industry could fall by 40% by 2035 under an accelerated electrification scenario. Manifest ID 1790123607698657069 - International Energy Agency Press Release - interrogate via MCP