Industry leaders urge COP31 to accelerate clean electrification and heavy industry decarbonization to curb global warming, arguing that current policy trajectories fall short of the 2°C target.
Schneider Electric is among the over 30 ETC signatories pushing COP31 leadership to prioritise clean electrification, which the analysis says could cut projected warming to about 2.3°C and lift electricity's share of final energy above 50% by 2050. Stronger policy support would benefit electrification technology providers, but this is an advocacy letter without concrete measures, limiting near-term price impact.
Tata Steel is a named signatory of the ETC letter ahead of COP31. The briefing states green steel costs about 45% more than conventional steel but raises a car's price only about 1.2%, and that a CO2 price of around USD 100 per tonne, in line with today's EU ETS, would drive steel decarbonisation. This is mixed for steel producers: higher costs but potential policy-driven demand for low-carbon steel; the letter itself imposes no binding measures.
Over 30 Energy Transitions Commission (ETC) members, including Schneider Electric and Tata Steel, are calling on COP31 leadership to prioritize clean electrification and heavy industry decarbonization. A new ETC analysis warns that current policies track toward 2.6°C of warming, but aggressive electrification and sector-specific reforms could lower this to 2.3°C.
The letter urges COP31 leaders to prioritize clean electrification and the decarbonization of hard-to-abate sectors to keep global warming significantly below 2°C.
The commission suggests a combination of massive clean electrification, phasing out coal, decarbonizing heavy industry through carbon pricing, and reducing methane emissions.