COP31 electrification push puts focus on contracts and regulation for the global energy transition
Published on 12 November 2026
Grid access and power costs will help determine whether climate targets become viable projects
At a glance
Switching from fossil fuels can cut emissions across transport, buildings and industry, but the benefits depend on a cleaner electricity supply.
Public investment plans raise questions about who bears construction and performance risks as spending on power networks and generation grows.
Carbon market negotiations add another dimension, but credits cannot replace efforts to cut emissions from electricity generation.
Electrification is a central theme of the agenda set by the presidency of the 31st United Nations climate change conference (COP31) underway in Antalya, Türkiye until 20 November. The presidency's Global Climate Action Agenda aims to increase the share of global final energy demand met by electricity from just over 20% to 35% by 2035. This action plan is a presidency-led target on global electrification rather than a formally negotiated COP commitment.
Cleaner power
Electrification links climate goals with changes in transport, buildings and industrial processes. Cutting emissions depends on cleaner electricity supply, alongside investment in generation, grids, storage and system flexibility.
The European Union faces similar challenges in putting its plans into practice. Its electrification action plan, presented in July, aims to increase electricity's share of from 23% to 46% by 2040. Reuters reported in October that the EU planned to seek a COP31 mitigation package focused on translating existing climate pledges into action, including through electrification and the transition away from fossil fuels.
In the United Kingdom, the Clean Power 2030 action plan estimates average investment of approximately £40 billion annually between 2025 and 2030 to support the transition to clean electricity. The plan identifies generation, transmission infrastructure and supply and demand flexibility as critical. It also recognises electrification of heat, transport and industry as part of the longer-term transition.
Project risks
Electrification raises linked investment and legal questions. Grid access, connection delays, infrastructure permits and electricity prices, can affect project viability. So can power purchase agreements and how contracts allocate construction and performance risks. For industrial users, electricity costs and security of supply also influence the timing of investments.
Climate finance and carbon markets form part of the wider implementation picture. The COP31 presidency’s proposed climate implementation bridge aims to help countries translate their nationally determined contributions into investable project portfolios. Meanwhile, continuing negotiations under article 6 of the Paris Agreement remain relevant to international carbon-market cooperation, although carbon credits are not a substitute for decarbonising electricity supply.
Osborne Clarke comment
COP31 faces a test of whether electrification targets can lead to credible implementation pathways, supported by investment, infrastructure and international cooperation. The implications extend beyond climate policy to project finance, energy procurement, infrastructure contracts and industrial strategy.
The summit’s significance will depend on whether its political signals lead implementable policies and investable projects that attract investment. The legal challenge is to ensure that the contractual and regulatory frameworks supporting electrification can accommodate the scale, pace and complexity of the transition.
Georgia Phillips, Sustainability and Reporting Lead at Osborne Clarke, contributed to this Insight.
The Osborne Clarke team can provide further information of these developments and related issue. Please get in touch with our experts.
