India slips to 71st spot on Energy Transition Index; investment capacity up

Helped by significant improvement in energy efficiency and investment capacity, India has been ranked 71st on a global Energy Transition Index released on Wednesday by the World Economic Forum.
Sweden topped the list of 118 countries, followed by Finland, Denmark, Norway and Switzerland in the top five.
China was ranked 12th, the US was 17th and Pakistan at 101st place. Congo was ranked lowest.
While India's rank has fallen from 63rd last year, the WEF said India and China experienced the greatest overall improvement among large economies, especially in increasing access to energy and strengthening transition readiness.
The WEF said the top five largest economies China, the US, EU, Japan and India will ultimately determine the pace and direction of the global energy transition due to their sheer size.
Together, they account for around half of the global GDP, population and total energy supply (TES), and also nearly two-thirds of global emissions, giving them an outsized influence through their consumption patterns, investment flows and policy choices.
Over the past decade, India has made significant strides in increasing equity through greater access to energy and clean fuels, while also improving energy regulations and investment in renewable and other clean-energy technologies.
WEF said that continued improvement in grid reliability, energy access for rural areas and further reducing dependence on imported energy may enable further progress in energy security and equity.
"Further investment in infrastructure, renewables, labour force development and financing conditions could help boost the country's energy transition," it added.
India also made progress in lowering energy intensity and CH4 emissions, creating more favourable energy regulations and increasing clean energy investments, it said.
While 77 of 118 countries improved their scores in 2025, the share of countries advancing across all three energy dimensions -- security, sustainability and equity -- was only 28 per cent, highlighting that the majority still progressed unevenly.
The US led in energy security, while India advanced in energy efficiency and investment capacity.
The WEF said global progress towards secure, equitable and sustainable energy is accelerating after years of sluggish gains.
However, rising geopolitical tensions, investment gaps, and a growing disconnect between clean energy innovation and deployment where it is needed most threaten to undermine momentum.
The Fostering Effective Energy Transition 2025 report, developed in collaboration with Accenture, benchmarked the performance of energy systems of 118 countries across three performance dimensions security, sustainability and equity and five readiness factors -- political commitment, finance and investment, innovation, infrastructure, and education and human capital.
It noted that despite USD 2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tonnes in the hottest year on record, as energy demand rose 2.2 per cent driven by artificial intelligence (AI), data centres, cooling and electrification.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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