A new report from the World Economic Forum (WEF) has revealed encouraging advancements in the global energy landscape, marking significant strides towards secure, equitable, and sustainable energy sources.
However, the momentum continues to be threatened by rising geopolitical tensions, investment shortfalls, and significant disparities in clean energy innovation and deployment, particularly in regions that need it most.
Titled the Fostering Effective Energy Transition 2025 report, this comprehensive study was conducted in collaboration with Accenture and examines the energy systems of 118 countries across a range of factors: security, sustainability, and equity.
Key insights indicate that 65% of these countries have improved their Energy Transition Index (ETI) scores, with 28% progressing uniformly across all three core dimensions.
“Energy systems are evolving at varying speeds,” said Roberto Bocca, head of the Centre for Energy and Materials at WEF.
“We are seeing more holistic approaches and visible progress. It is encouraging that 28% of countries, including major energy consumers and producers like Brazil, China, the US and Nigeria, have advanced across multiple dimensions. Staying on track demands urgent investment in fast-growing emerging economies.”
The report highlights that, despite witnessing a remarkable 1.1% increase in the ETI year-on-year — the most significant rise since pre-pandemic levels — challenges remain evident.
Although improvements in equity can be attributed to stable energy prices and subsidy reductions, while sustainability marks progress through enhanced renewable energy adoption and improved energy efficiency, energy security has remained stagnant, hindered by inflexible power systems and a continued reliance on imports.
In 2024 alone, an investment of $2 trillion into clean energy projects took place, yet global emissions skyrocketed to a staggering 37.8 billion tons, the highest on record.
This rise is attributed to a sharp 2.2% increase in energy demand, fueled predominantly by advancements in artificial intelligence (AI), boosted cooling needs, and electrification.
In a detailed breakdown of the ETI scores, Sweden, Finland, and Denmark emerged as leaders, showcasing their historical commitment to progressive energy policies, strong infrastructures, and diversified low-carbon energy systems.
Notably, Norway and Switzerland rounded out the top five, signalling a renewed momentum in their energy transitions, while countries such as Austria, Latvia, and the Netherlands also reported significant achievements in equity and renewable energy deployment.
Among emerging economies, China attained a notable 12th place, motivated by its scale and commitment to clean energy investments.
Meanwhile, Brazil led Latin America in 15th place, capitalising on energy diversification and growing renewable initiatives.
Post-Brexit, the United Kingdom ranked 16th, just ahead of the United States, which found itself 17th overall but first in energy security, thanks to its diverse energy infrastructure.
Despite these advancements, the report raises critical concerns regarding emerging economies. Since 2021, over 80% of energy demand growth has originated from these regions, yet they have only secured less than 10% of clean energy investments.
The report points to the urgent need for targeted policies, infrastructure modernisation, and increased workforce skills to meet these discrepancies.
Emerging Europe particularly shone with notable improvements in infrastructure and equity, while Sub-Saharan Africa made commendable progress as Nigeria swiftly moved up the ranking from 109th to 61st place since 2016, reflecting the positive impact of local reforms and strategies.
Looking ahead, maintaining progress in the energy transition will depend on redefining energy security beyond traditional supply concerns, addressing capital imbalances, and overcoming systemic infrastructure challenges.
The call for enhanced cooperation and investment in sustainable technologies remains paramount for a resilient future.
BUSINESS REPORT
