Global firms push faster electrification amid energy security concerns
Geopolitical instability and volatile energy costs are accelerating corporate interest in electrification, according to a survey of nearly 2,000 business executives across 18 countries reported by the Financial Times.
The survey found that 80% of executives viewed electrification as more urgent due to geopolitical risks, while 91% said replacing fossil fuel-based systems with electric alternatives would improve energy security.
The polling covered countries including India, China, the US, the UK, Germany, Japan, Indonesia, South Africa, Nigeria, and Brazil. Businesses in India, Indonesia, Nigeria, the Philippines, Colombia, and South Africa were identified among those with the most ambitious electrification targets.
About 75% of respondents said they expect to replace most fossil fuel-powered equipment by 2030. However, 72% said existing government policies were slowing the transition.
The survey was conducted by Public First on behalf of E3G, We Mean Business Coalition, and the Global Renewables Alliance.
The report said electrification is increasingly being viewed as a way to reduce exposure to fossil fuel price shocks and improve operational resilience. Sectors are shifting towards electric furnaces, heat pumps, and electric vehicles as part of this transition.
The Financial Times report noted that while electrification is central to global decarbonisation efforts, fossil fuels, particularly coal, continue to dominate power generation in several countries, including China.
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