New report says electrification is critical to UK prosperity, jobs and energy security

Tue 16 June 2026 View all news

A new report from Corporate Leaders Group UK finds that accelerated electrification can strengthen the UK's economy, resilience and energy security. The report produced by Cambridge Econometrics sets out the case for electrification and highlights the key barriers that must be overcome to electrify. Meanwhile, the UK Government has launched a new international collaboration to promote electrification called 'Electrify Now'.

The report, echoes the central theme of the Climate Change Committee's recent progress report, saying that electrification offers a strategic pathway to enhance economic performance, energy security and long-term competitiveness.

It says that the UK is entering a period of heightened geopolitical and economic uncertainty, marked by volatile global energy markets, supply chain disruptions and increasing pressure to strengthen domestic resilience. It highlights that recent shocks have exposed the risks of continued reliance on imported fuels.

This report, funded by We Mean Business Coalition, compares three alternative development pathways for the UK against a current policies baseline using macroeconomic modelling by Cambridge Econometrics:

  • an electrification-led pathway

  • a mixed technologies pathway

  • a fossil fuel-led alternative

It concludes that, taken together, the evidence suggests that electrification is not only essential for meeting climate targets, but also a strategic economic choice. A faster, more coordinated transition to electrification could deliver stronger growth, greater resilience and improved energy security for the UK.

Compared to the alternative options, electrification will drive higher growth and productivity and support sustained investment in domestic infrastructure and clean technologies. It will bring significant employment benefits, creating around 250,000 more jobs than current policies by 2050 in sectors including construction, manufacturing and services. Overall, the report says, UK GDP would be over one percentage point larger in the electrification-led scenario than under current policies.

The report calls for energy prices to be reformed to enable consumers to benefit from low cost renewable electricity as well as reducing upfront costs through targeted financial support, innovative financing models and risk-sharing mechanisms.

There are also recommendations to improve planning, expand access to finance, more standardisation and clearer investment frameworks.

In a related development, UK Energy Secretary Ed Miliband, in collaboration with the UN, governments from four continents and major businesses, has launched a new international initiative aimed at accelerating electrification.

The initiative called 'Electrify Now' was unveiled at the Global Energy Transition and Electrification Summit (GETES) at Mansion House in London.

It seeks to build the momentum behind a proposed global target to meet 35% of final energy demand through electricity by 2035 - from around 20% today - to improve energy security and promote infrastructure scaling worldwide.

At the same event, the UK Government announced that it has officially secured more than £100 billion in private clean energy investment since the Labour government took office in 2024 .

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