China Leads Electrification as US Risks Stalling, New 16-Country Index Finds

China leads the world's major economies in electrification deployment, while the United States risks losing momentum and several European countries struggle to turn supportive policies into practical progress, according to a new report from the We Mean Business Coalition. Released on 27 October 2026, the Electrification Competitiveness Index assesses 16 economies across Europe, Asia, Africa and the Americas, examining their progress in replacing fossil fuel technologies with electricity-based alternatives.

Developed with support from RMI, the index identifies a significant gap between government policies and actual electrification. Across the countries assessed, the median score for enabling conditions reached 67%, compared with just 45% for deployment. Fourteen of the 16 countries scored better on policy and enabling conditions than on implementation, suggesting that electricity costs, grid constraints, and investment barriers continue to slow the transition across industry, transport, and buildings.

 

China, France and Spain Lead Electrification Progress

 

China recorded the highest electrification deployment score among the 16 countries, achieving 68% on the index's deployment measure. The country's performance reflects coordinated investment in electricity networks, industrial policies, and incentives that support electric technologies. France and Spain also ranked among the stronger performers, combining supportive market conditions with relatively advanced electrification infrastructure. According to the report, clean power accounts for about 95% of electricity generation in France and 75% in Spain.

The index classifies China, France and Spain as having a "solid foundation", meaning they perform relatively strongly in both deployment and enabling conditions. Their experience suggests electrification advances more effectively when electricity infrastructure, competitive pricing, industrial policies, and technology adoption develop together. María Mendiluce, CEO of We Mean Business Coalition, said, "Electrification is becoming a test of economic competitiveness and energy security."

 

Read more: EU Parliament Backs Three-Year Delay to Methane Emissions Rules for Energy Importers

 

UK and Germany Face Major Policy-to-Deployment Gaps

 

Several major European economies have supportive electrification policies but have made comparatively limited progress in deploying electric technologies. Germany, the United Kingdom, Italy and Poland are classified as having "potential for take-off", alongside India. The UK recorded the largest gap between enabling conditions and deployment, scoring 82% for the former and only 38% for the latter. The report identifies industrial electricity prices, approximately five times higher than gas per unit of energy, as a significant barrier to switching from fossil fuels.

Germany faces a grid connection backlog of hundreds of gigawatts, while high electricity costs and limited adoption of electric vans and trucks are slowing progress. India also falls into the potential-for-take-off category, scoring 67% for enabling conditions and 41% for deployment. Despite progress in renewable energy and electric mobility, constraints in electricity infrastructure, limited industrial electrification, and weak uptake of electric heavy transport continue to create implementation challenges.

 

US and South Korea Risk Losing Electrification Momentum

 

The United States, Australia, Brazil, Ethiopia and South Korea are classified as being at "risk of stalling". These economies have achieved meaningful electrification deployment but face weaker enabling conditions that could constrain further growth. In the United States, the report highlights federal policy reversals and electricity grid bottlenecks. More than 2 terawatts (TW) of electricity generation and storage projects are awaiting grid connections, compared with approximately 1.3 TW of existing generating capacity.

South Korea recorded the second-highest deployment score at 60%, but weaker electric vehicle policies and growing utility debt could limit future progress. Ethiopia illustrates a different challenge: electric vehicles accounted for about 60% of new passenger car purchases in 2024 after restrictions on combustion-engine vehicle imports, while only about 60% of the population has access to electricity. These findings show that policy uncertainty, infrastructure limitations, and uneven access to energy can threaten electrification momentum.

 

Explore OneStop ESG Marketplace: EV & clean mobility

 

Emerging Economies Need Greater Grid Investment

 

Indonesia, the Philippines, and South Africa fell into the "early-stage adoption" category, with both enabling conditions and deployment below the index's halfway thresholds. Clean electricity accounts for about 18% of generation in Indonesia and South Africa and 23% in the Philippines. Annual grid investment in all three countries remains below 0.4% of GDP, compared with an average of 0.65% across the 16 economies assessed.

Limited investment in electricity infrastructure can restrict renewable energy integration and the adoption of electric technologies across transport, buildings, and industrial operations. The report argues that improving grid reliability, expanding transmission capacity, and reducing connection delays will be essential for enabling businesses to electrify. It also highlights the need for electricity prices to become more competitive with fossil fuels, particularly in markets where electricity remains considerably more expensive than natural gas.

 

Electrification Could Reduce Fossil Fuel Import Costs

 

The index links faster electrification with energy security and economic competitiveness, particularly as countries seek to reduce exposure to volatile international fossil fuel markets. According to the report, fossil fuel-importing economies spent about $330 billion more on seaborne oil and liquefied natural gas during the first six months of the 2026 Strait of Hormuz crisis. Citing International Energy Agency estimates, the analysis suggests that faster electrification could reduce global fossil fuel import costs by approximately $400 billion annually by 2035.

The findings also follow a call from the COP31 Presidency for electricity to meet 35% of global final energy demand by 2035, up from just over 20% currently. We Mean Business Coalition recommends reforms covering electricity pricing, grid investment, planning approvals, market design and incentives for businesses adopting electric technologies. Molly Walton, the coalition's Director of Energy, said, "The Index is designed to help countries understand where they are on the electrification journey, where the gaps are and what they can learn from others."

The report concludes that national electrification strategies must focus increasingly on implementation rather than policy commitments alone. Countries with established frameworks must address electricity affordability, infrastructure constraints, and barriers to commercial investment, while economies at earlier stages need stronger foundations for clean electricity deployment.

The index's country scores are comparative measures of electrification readiness and deployment, not direct measurements of the share of total energy use that has been electrified. Its findings nevertheless show how policy, infrastructure, and market conditions can shape the pace at which businesses and households move away from fossil fuels.

 

Source: We Mean Business Coalition