COP31: utilities pledge $156bn in annual transition infrastructure investment

A group of 89 utility companies – members of the Utilities for Net Zero Alliance (UNEZA) – have pledged to invest at least $156bn annually in transition infrastructure. The announcement was made at COP31 in Türkiye, where the Presidency is aiming to electrify 35% of energy demand by 2035.

UNEZA’s investment pledge targets infrastructure across generation, storage and transmission. Between its launch at COP28 in 2023 and the end of the decade, UNEZA expects to mobilise $1tn in transition investment.

Longview Networks Insurance Investment Forum | 20th January 2027 | London

Transmission demand

For UNEZA, the previous three COPs have offered a platform to draw investor and regulatory attention to grid infrastructure. ‘No transition without transmission’ quickly became part of the UNEZA lexicon.

Previously, members had committed to collectively invest $148bn in transition infrastructure each year, up from the initial aim of $117bn.

At COP31 today, the alliance announced an updated target of $156bn and provided an update on member activities. In 2025, UNEZA members installed a record 21,000 km of new grid lines, a 50% increase compared to 2024.

Martin Pibworth, CEO at British utility SSE and co-chair of UNEZA, said the 35-by-35 target endorsed by the COP31 presidency will boost momentum.

“The COP31 35-by-35 pledge sends a vital signal of intent from policymakers, and the utilities community stands ready to turn political ambition into real investment and delivery on the ground, building on the significant ramp up in deployment we've delivered in the last year”, he commented.

Grid finance

At COP30 in Brazil, UNEZA raised concerns over financing constraints facing grid infrastructure. As part of its proposed solutions, the alliance floated the idea of an infrastructure investment fund to support members in deploying $82bn annually in grids – with the aim of attracting institutional capital.

Institutional investors on their part have been assessing grids for their investment viability. Joint research from Santander and Standard Life, published this year, showed that transmission investment in the UK is expected to peak between 2030 and 2035 – with 40% of investment in networks being financed through corporate bonds.

EDP chief executive officer Miguel Stilwell d'Andrade welcomed UNEZA’s investment ambition but pointed to regulatory environments and supply chain bottlenecks as barriers.

“UNEZA’s investment plans show that utilities are ready to deliver at scale. But ambition alone is not enough. We need renewables, grids, storage and flexibility to advance together, supported by faster permitting, stronger supply chains and effective regulation”, he said.

COP31’s electrification target brings these headwinds into the limelight. “The age of electricity is taking shape – and COP31 will be remembered as the moment we flicked the switch”, said Murat Kurum, the COP31 president.