To address the emissions of greenhouse gases that warm the atmosphere, both individuals and businesses must transition to electric modes of transportation, homes, and factories.
However, the REN21 research network warns that only 13 states have implemented public policies to incentivize this shift in four priority sectors.
Contrary to expectations following the Covid and energy crises, 2023 saw a slowdown in the adoption of policies and a weakening of ambitions in some countries, according to a report by REN21.
Among the necessary measures cited by the organization are the phasing out of support for fossil fuels, building standards, zero-emission goals (e.g., for buses in cities like London or Beijing), subsidies for heat pump purchases (which saw a 38% increase in installations in Europe in 2023), agrivoltaics or biogas, as well as the expansion of charging stations and cold and heat networks.
According to the report, the 13 countries taking decisive action to boost demand for low-carbon products and services in four crucial sectors for energy transition are Greece, Portugal, Spain, Ireland, the United Kingdom, Italy, the United States, Egypt, China, Vietnam, France, Germany, and India.
While twenty other countries have initiatives in three of the four sectors, 84 countries have yet to implement any measures to influence demand in these sectors.
The overarching goal of the current transition is to reduce the predominant use of oil, coal, and gas in total energy consumption for transportation, heating, or industrial purposes by electrifying each sector.
According to REN21’s analysis, China stands out as “the only country where the share of electricity in energy consumption is consistently increasing,” rising from 20% to 30% across all sectors between 2011 and 2021.
However, over the same period, the United States and the EU have seen electricity consumption stagnate at around 23%.
Electrification progress remains sluggish in transportation, buildings, and industry, with one exception being agriculture, where the electrification of operations increased from 20 to 27% between 2011 and 2021.
REN21’s director, Rana Adib, emphasizes that policymakers must move beyond a ‘business-as-usual’ mindset. She asserts that energy transition requires more than just increasing renewable energy supply and calls for structural policies aimed at boosting demand and accelerating electrification.