Banking on electrification: Five things to know

Banking on electrification: Five things to know

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3 Nov 2026, 4:29 PM

As countries prepare for COP31, the United Nations annual climate conference, a key question is how to turn clean-energy ambitions into reality. ING’s new paper, Banking on Electrification, looks at why electrification is so important, what is holding it back and what joint action needs to happen next to accelerate financing.

“The energy transition is entering a different phase. We know much more clearly which technologies and other solutions can help us decarbonise our economies. The challenge now is deploying them at the scale and pace required.” - Steven van Rijswijk, CEO of ING.

The message of the paper is simple: the next phase of the energy transition is about turning ambition into action. Electrification can play a major role, but capital alone is not enough. Only if technology, infrastructure, policy, demand and finance move together electrification can be made bankable at the speed and scale required.

Here are the five things to know when it comes to banking on electrification:

1. Electrification is a big part of the energy transition

From the cars we drive to the way we heat our homes and power industry, more of our economy can run on electricity instead of fossil fuels. If that electricity comes from renewable sources, it can significantly reduce emissions.

The opportunity is already substantial. Research referenced in the paper suggests that up to 75 percent of global energy demand could be electrified using technologies already available today.

2. The technology is there. Making it work at scale is harder

Producing more renewable electricity is only part of the story. We also need the grids, batteries, charging points and other infrastructure to deliver renewable electricity where and when it is needed.

And projects need to make economic sense. ING’s experience shows three things are particularly important: proven technology, supportive policies and enough certainty about future revenues. When these come together, it becomes easier to attract investment that supports the growth of clean energy production and use.

3. We need to look at the whole system

Electrification is a bit like a puzzle: the pieces depend on each other.

More electric vehicles, for example, need more charging infrastructure. More renewable power requires stronger grids and more storage. And a factory cannot switch to electricity if the grid cannot provide the power it needs or new technologies aren’t mature enough.