Energy Transition Slows Amid Global Uncertainty
The report calls for decisive action from all stakeholders—across the supply, demand, and distribution value chain, and in both public and private sectors—to ramp up efforts in transforming energy systems.
The energy transition is making progress but losing momentum due to rising global uncertainty, according to the World Economic Forum's "Fostering Effective Energy Transition 2024" report. The Energy Transition Index (ETI), which assesses 120 countries on their current energy performance and readiness for transition, shows notable advances in energy efficiency and clean energy adoption. However, rising energy prices have hindered progress in energy equity, and energy security remains challenged by geopolitical risks.[1]
This year, the ETI introduced “tailored pathways” to provide region-specific recommendations based on country-specific characteristics such as income level and local energy resources.
Key Findings
Global Trends: The global average ETI score has increased by 6% since 2015 but has shown slower growth over the past three years. In 2024, the highest global average scores were recorded, with modest improvements in system performance (0.2%) and strong progress in transition readiness (2% growth).
Top Performers: Sweden leads the ETI rankings, followed by Denmark and Finland. France has entered the top five due to its effective energy efficiency policies.
Growing Demand Centers: Major demand centers like Brazil, China, and India have made significant improvements on the ETI in recent years.
Balanced Progress: Only 28% of countries have shown strong improvement in the lowest-scoring dimension, indicating movement towards a more balanced energy system. However, just 17% of countries in 2024 managed to balance progress across the energy triangle's dimensions—equity, security, and sustainability.
Country-Specific Progress: Of the 120 countries benchmarked, 107 have shown progress over the last decade, with 30 countries improving their scores by more than 10%. Notably, 28% of nations, including Kuwait, Nigeria, Bangladesh, Mozambique, and Tanzania, are transitioning towards a more balanced energy system.
Despite positive long-term trends driven by clean energy investments, improved regulatory frameworks, and the urgency of the climate crisis, the report highlights the need for sustained momentum to achieve long-term energy transition goals. Only 20 countries improved scores across all three dimensions of the energy triangle in the past year, underscoring the challenges posed by macroeconomic complexities and geopolitical tensions.
The report calls for decisive action from all stakeholders—across the supply, demand, and distribution value chain, and in both public and private sectors—to ramp up efforts in transforming energy systems. Innovative solutions, mobilized investments, and bold policy reforms are essential to harness the momentum of the energy transition and achieve an equitable, secure, and sustainable energy future.