ANTALYA, Nov 10 – The African Development Bank (AfDB) and World Bank will serve as inaugural co-chairs of a new international financing coalition from 2027, as governments and development institutions seek to mobilise capital for electrification across emerging and developing economies.
The Electrify Now Finance Coalition, announced during the 31st United Nations Climate Change Conference (COP31), will bring together governments, development banks and private investors to expand financing for electricity infrastructure and accelerate the adoption of electric technologies.
The initiative forms part of the COP31 Presidency’s 35-by-35 Global Electrification Pledge, which aims to increase electricity’s share of global final energy consumption from approximately 23% currently to 35% by 2035.
For Africa, where electricity access, grid capacity and the cost of energy remain significant constraints on industrial development, the coalition could provide a platform for coordinating development finance and private investment. Its effectiveness will depend on how much capital it mobilises and whether financing reaches projects that can expand reliable and affordable electricity supply.
COP31 advances global electrification target
The 35-by-35 pledge has attracted support from 180 companies representing more than $1.69 trillion in annual revenue. The initiative seeks to accelerate electrification across transport, buildings and industry, linking electricity demand with the expansion of clean power generation, stronger grids and energy storage.
The target is based on analysis by the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) on the changes required to keep global warming within 1.5 degrees Celsius above pre-industrial levels.
COP31 President Murat Kurum said the target addresses the absence of a clear global objective for electrification.
“This year’s energy crisis has shocked us out of our complacency and demonstrated the inherent vulnerability of dependence on energy imports. Electrifying the global economy is now essential to boost energy security, cut emissions and drive economic growth,” he said.
“The age of electricity is taking shape, and COP31 will be remembered as the moment we flicked the switch,” Kurum added.
The COP31 Presidency has framed the summit as an “Implementation COP”, with an emphasis on converting climate commitments into funded projects and measurable outcomes.
“Now our promises must be backed by capital. That capital must fund investment. And that investment must deliver results,” Kurum said.
COP31 President of Negotiations Chris Bowen said faster electrification would require practical implementation plans supported by investment in clean power, electricity networks and storage.
“When electrification is backed by clean power, stronger grids and storage, it can improve energy access, strengthen energy security and cut emissions across households, transport and industry,” he said.
Development banks and investors mobilise financing
The Electrify Now Finance Coalition is intended to address financing constraints facing emerging and developing economies as they expand electricity infrastructure and adopt electric technologies.
The AfDB and World Bank will take on the inaugural co-chairing roles in 2027, bringing together public and private financial institutions around investment opportunities in electrification.
The COP31 Presidency has also established a strategic partnership with the Organisation for Economic Co-operation and Development (OECD), which is preparing two input notes for the summit covering electrification financing and the economic opportunities associated with accelerated adoption.
OECD Secretary-General Mathias Cormann said rising electricity demand would require substantially greater investment in generation, grids and storage. He added that mobilising private capital at the required scale would depend on predictable policy frameworks, efficient regulation and a pipeline of bankable projects.
The private sector has also signalled support for the global target. The We Mean Business Coalition has mobilised more than 180 companies, including Volvo, Uber, IKEA and Siemens, representing over $1.69 trillion in annual revenue.
Coalition Chief Executive Maria Mendiluce said businesses were prepared to drive electrification, but governments needed to make the transition affordable and commercially viable to encourage further industrial investment.
IRENA and IEA to support grid investment and implementation
Alongside the financing coalition, international energy institutions are developing mechanisms to help countries identify infrastructure requirements and track progress towards the 2035 target.
IRENA will support developing countries through its Enabling Distribution Grids for Electrification (D-GRIDS) programme. The initiative will help governments identify electricity distribution investment needs, prepare projects and access financing.
IRENA Director-General Francesco La Camera said the programme would strengthen distribution networks and support wider electrification, complementing the agency’s Utilities for Net Zero Alliance (UNEZA).
UNEZA is increasing its annual investment commitment for electricity grids, renewable energy and storage from $148 billion to $156 billion.
Martin Pibworth, chief executive of SSE plc and UNEZA co-chair, said clean electrification could help reduce energy bills, strengthen security of supply and improve resilience.
The IEA will lead a Global Electrification Tracking Mechanism to monitor electrification trends across countries and regions. Its Executive Director, Fatih Birol, said electric technologies were often cost-competitive and could strengthen energy security for countries dependent on imported fuels.
The agency will also provide data-driven analysis to support the 35-by-35 pledge and track progress towards its implementation.
Transport, industry and national electrification plans
COP31’s electrification agenda extends beyond electricity generation and distribution. The presidency is launching a Global Green Freight Corridors Initiative with the International Transport Forum to develop cleaner and more resilient freight routes.
The Global Renewables Alliance is also bringing governments together on November 10 to present their national electrification plans.
Its Chief Executive, Bruce Douglas, said the latest fossil fuel crisis was costing energy importers an additional $1.8 billion every day. He argued that renewable-powered electrification could reduce consumers’ exposure to volatile fossil fuel prices and that governments needed credible national plans to encourage businesses to electrify industry, buildings and transport.
Türkiye and Australia have worked with Sustainable Energy for All (SEforALL) to assess the implications of electrification for developing economies. A report titled The Electrification Opportunity, published on November 10, examines the challenges and potential economic benefits for emerging markets and developing economies.
SEforALL Chief Executive and UN Secretary-General’s Special Representative Damilola Ogunbiyi said electrification could support industrialisation, job creation, improved livelihoods and greater energy independence.
Further COP31 initiatives are scheduled around thematic discussions on resilient cities on November 12, finance on November 13 and industry on November 16.
The summit also marks the 10th anniversary of the Marrakech Partnership with the release of the 2026 Yearbook for Global Climate Action. Drawing on reporting from 83 cooperative initiatives covering more than 200 actions, the publication identifies progress and gaps in global climate action and reports progress in 84% of Plans to Accelerate Solutions.
For African economies, the central issue is whether the new financing arrangements can translate into bankable electricity projects, stronger distribution networks and affordable power for households and businesses.
The AfDB’s participation as inaugural co-chair places an African development finance institution at the centre of the coalition’s initial leadership, but the scale and accessibility of financing will determine its impact across the continent.
