This report is part of the World Economic Forum’s System Initiative on Shaping the Future of Energy. The report summarizes insights from the “Energy Transition Index”, which builds upon the previous series of “Global Energy Architecture Performance Index” by adding a forward looking element of country readiness for energy transition.
The index benchmarks 115 countries on the current level of their energy system performance, and the readiness of their macro environment for transition to a secure, sustainable, affordable and inclusive future energy system. The fact-based framework and rankings are intended to enable policy makers and businesses to identify the destination for energy transition, identify imperatives, and align policy and market enablers accordingly.
Globally, energy transition has slowed. The year-on-year increase of the global average score on the Energy Transition Index was the lowest of the last five years. Three years after the global milestone of political commitment through the Paris Agreement, this lack of progress provides a reality check on the adequacy of ongoing efforts and the scale of the challenge.
Peer-group analysis shows that challenges and priorities are differentiated across country archetypes. A complex energy transition, which includes the interaction between different systems, leads to diverse challenges. Effective energy transition is not restricted to shifts in fuel mix or dominant technology for energy extraction, conversion or consumption. Rather, accelerating the energy transition will require coordinated action across economic, technological and sociopolitical systems.