Climate change goals can be met through both the decarbonization of the electricity sector and the electrification of sectors that now use other fuels. However, the electricity sector is navigating major technological disruptions that are changing the essence of its regulatory and business landscape. Similarly, other sectors that are good candidates for electrification, like transportation, are witnessing further technological disruptions, leading to paradigm shifts. New business models in electricity and transportation might converge, with both sectors focusing on services traded on a digital platform, leading to their horizontal integration. A side effect of this process would be an increase in electricity use and mobility—achieved through a reduction of emissions, if electricity is generated from carbon-free sources. Governments, both individually and collectively, should ensure the removal of barriers to the convergence of these sectors, avoiding inadvertently delaying the horizontal integration of the sectors with fragmented approaches.
