COP31's Global Electrification Pledge: What UK Businesses Need to Know
Turkey's presidency of the COP31 climate summit has put forward two connected proposals. The first is a global target to raise electricity's share of final energy use to 35% by 2035. The second is a pledge to ensure artificial intelligence helps rather than hinders climate progress. Both were announced in New York during September's Climate Week, though the electrification goal was first outlined in June as part of the COP31 Action Agenda.
The proposals are voluntary. They are designed to coordinate action across governments, companies, and investors rather than impose legal obligations. However, they mark a shift in how climate diplomacy is being framed. Instead of focusing solely on emissions targets and international agreements, the Turkish presidency is emphasising practical infrastructure changes and technology governance.
For UK businesses, these initiatives matter in three ways. They signal where international climate policy is heading. They may influence procurement standards and supply chain expectations. And they highlight two areas where investment, regulation, and commercial opportunity are likely to converge over the next decade.
Electrification targets set a global direction of travel
Electricity currently accounts for just over 20% of final energy consumption worldwide. The COP31 presidency wants to increase that share to 35% by 2035. The target is based on analysis from the International Energy Agency and the International Renewable Energy Agency, both of which have modelled pathways consistent with limiting global warming to 1.5°C.
Final energy consumption refers to the energy used by buildings, transport, and industry, not the total primary energy supply. Consequently, the pledge is about switching end-use demand away from direct fossil fuel combustion and towards electricity. That includes replacing gas boilers with heat pumps, petrol vehicles with electric models, and fossil-fuelled industrial processes with electric alternatives.
The Turkish presidency has described the 35% figure as a global ambition, not a uniform national mandate. Countries will have different starting points, grid capacities, and industrial profiles. Nevertheless, the target is intended to create a common direction and a measurable benchmark for collective progress.
The presidency's materials emphasise that electrification depends on enabling conditions. Clean power generation must expand. Energy storage and grid flexibility must improve. Transmission and distribution networks need upgrading. Developing countries will require financial and technical support. Without these foundations, increasing electricity's share of energy use could simply shift emissions from one part of the system to another.
Reuters reported that Turkey is proposing a voluntary tracking mechanism to monitor collective progress on electrification. The mechanism would allow governments, businesses, and civil society to see how far the global economy is moving towards the 35% target and where gaps remain.
AI pledge addresses a growing source of electricity demand
The second initiative is called the Antalya Pledge on AI. It aims to align artificial intelligence development and deployment with climate and sustainable development goals. The pledge covers how AI systems are designed, procured, powered, deployed, measured, and managed.
Alongside the pledge, Turkey has launched the AI for Clean Technologies Initiative. This initiative will develop pilot projects in sectors such as smart energy and green industry. It will connect those pilots with industry partners and investors to scale up successful applications.
The focus on AI reflects a practical concern. Data centres, chip manufacturing, and model training consume large and rising amounts of electricity. If that electricity comes from fossil fuels, AI could become a significant source of emissions growth. If it comes from renewable or low-carbon sources, the impact is smaller. Either way, the demand is real and increasing.
At the same time, AI can improve energy efficiency, optimise grid operations, and enhance climate monitoring. The Turkish presidency is trying to steer AI towards those beneficial uses while managing the energy and emissions consequences of the technology itself.
For businesses, this matters because AI governance is starting to intersect with climate policy. Procurement standards, investor expectations, and regulatory frameworks are beginning to ask how AI systems are powered and whether they contribute to or detract from climate goals. The Antalya Pledge is an early signal of that convergence.
Implications for UK manufacturers, property owners, and fleet operators
These pledges are not legally binding. However, they shape the context in which UK businesses operate. Electrification is already a key element of UK climate policy. The government has committed to decarbonising the power grid by 2030 and phasing out new petrol and diesel vehicles. Heat pump installations are supported through the Boiler Upgrade Scheme. Industrial decarbonisation funding is increasingly directed towards electrification and hydrogen.
The COP31 electrification target reinforces that direction. It suggests that global supply chains, investor expectations, and trade standards will increasingly favour businesses that have switched to electric vehicles, electric heating, and electric industrial processes. Companies that delay electrification may face higher costs, reduced access to finance, or exclusion from tenders that prioritise low-carbon suppliers.
For manufacturers, electrification affects both energy use and capital investment. Electric furnaces, motors, and process heating equipment often require different infrastructure and operational approaches compared to fossil-fuelled alternatives. Grid connection capacity may need upgrading. Energy storage or on-site generation may become necessary to manage costs and ensure supply reliability.
Property owners and landlords face similar questions. Commercial buildings heated by gas boilers will need to transition to heat pumps, district heating, or other low-carbon systems. That transition involves upfront capital, planning for installation, and changes to maintenance contracts. Buildings that are not ready for electrification may lose value or become harder to let as tenants prioritise energy performance and carbon credentials.
Fleet operators are already navigating the shift to electric vehicles. The COP31 pledge adds international weight to that transition. It also highlights the importance of charging infrastructure, vehicle-to-grid technology, and managing the emissions associated with battery production and disposal. Businesses that rely on road transport need to plan for higher upfront costs, different maintenance requirements, and evolving regulatory standards.
Energy management becomes more complex in an electrified economy. Demand charges, time-of-use tariffs, and grid flexibility services will play a larger role. Businesses that can shift electricity use to off-peak periods, store energy, or reduce peak demand will have lower costs and better resilience. Those that cannot may face higher bills and greater exposure to price volatility.
Critical facts for business planning
- Electricity currently represents just over 20% of global final energy consumption, with a target of 35% by 2035.
- The 35-by-35 electrification target was first introduced in Bonn on 9 June 2026 as part of the COP31 Action Agenda.
- The Antalya Pledge on AI and the AI for Clean Technologies Initiative were launched in New York during September 2026.
- The electrification plan covers buildings, transport, and industry, with enabling conditions including clean power, energy storage, grid flexibility, and financial support for developing countries.
- Turkey is proposing a voluntary mechanism to track collective progress on electrification globally.
- The AI initiative addresses both the climate risks and opportunities of artificial intelligence, including the rising electricity demand from data centres and model training.
- Both pledges are voluntary political commitments, not legally binding obligations, but they indicate the direction of international climate policy and investor expectations.
How businesses should approach electrification and AI governance
The COP31 pledges are not immediate regulatory triggers. They do not create new UK legal requirements or directly change compliance obligations. However, they signal where policy, procurement, and investment are heading. Businesses that plan for electrification and AI governance now are more likely to manage costs and risks effectively than those that wait for mandates.
Start by reviewing energy use across your operations. Identify where fossil fuels are still in use and where electrification is technically and economically feasible. Buildings, transport, and some industrial processes are often good candidates. Heating, hot water, and light commercial vehicles are frequently cost-effective to electrify, especially where capital grants or tax incentives apply.
Grid capacity matters. Some sites may need connection upgrades before they can support increased electricity demand. Early engagement with your distribution network operator can help you understand timelines, costs, and constraints. In some cases, on-site generation or battery storage may be more practical than relying solely on grid supply.
If you supply the public sector or large corporates, expect electrification to feature in tender criteria. Our net-zero program for carbon reporting compliance helps businesses prepare for PPN 06/21 and other procurement standards that prioritise low-carbon suppliers. Demonstrating progress on electrification can improve your competitive position.
For businesses using or developing AI systems, consider how energy use is measured and managed. Data centres and cloud computing providers are increasingly asked to disclose the carbon intensity of their electricity supply. Businesses that train or deploy large AI models should track energy consumption and explore options for renewable electricity sourcing.
Energy efficiency remains the foundation. Reducing overall demand lowers costs, simplifies electrification, and reduces carbon footprints regardless of energy source. Insulation, lighting upgrades, motor efficiency, and process optimisation should come before or alongside electrification investments.
Finally, consider the wider supply chain. If you source materials or components from energy-intensive industries, ask suppliers about their electrification plans. Carbon accounting increasingly includes Scope 3 emissions, which means your suppliers' energy choices affect your own carbon reporting. Our sustainable procurement support can help you engage suppliers and manage supply chain emissions.
Where to find authoritative guidance and policy detail
The UK government's net zero strategy and industrial decarbonisation plans provide the national policy framework for electrification. You can access those documents through the Department for Energy Security and Net Zero.
For technical guidance on heat pumps, electric vehicles, and grid connections, the Energy Saving Trust offers independent advice for businesses and homeowners.
Information on grants, funding schemes, and capital support for electrification and decarbonisation is available from Business Support Helpline and the UK Research and Innovation industrial decarbonisation page.
Details of the COP31 presidency's electrification and AI pledges are published on the official COP31 website, along with updates on the Action Agenda and tracking mechanisms as they develop.