Historically, electrification has been a main driver of productivity and efficiency, but the main interest today is in its potential of reducing CO2 emissions that drive climate change. Electricity can be leveraged to reduce or eliminate carbon emissions in three ways: by decarbonising energy supply, by direct electrification and by indirect electrification, mainly of industrial processes.

Basing energy supply on fossil free electricity is a prerequisite for electrification as a driver for decarbonisation. This means replacing for example coal fired power plants with fossil free sources of electricity such as wind, solar, hydro or nuclear power. Consequently, the countries that already have an energy supply that is largely fossil free are well placed to lead the way.

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