India Slips to Rank 71 on World Economic Forum's Energy Transition Index

From a rank of 63 in 2024, India has now slipped to rank 71 on the World Economic Forum (WEF)'s Energy Transition Index (ETI), which ranks countries on their progress towards energy transition from fossil fuels to clean energy.
However, the report that compared the annual progress of 118 countries also noted that India had advanced in energy efficiency and investment capacity.
The ETI is a tool developed by the WEF, an international non-profit for public-private cooperation set up in 1971, to quantify the yearly progress of nations in energy transition – the move from high carbon-emitting fuels such as coal to what are generally considered cleaner and renewable fuels such as solar power.
The Forum takes into account two main aspects to put together the Index.
One is 'system performance', which includes three factors – energy security (the presence of a stable and resilient energy supply through developing a diversity of energy sources as well as grid and power supply reliability), equity (wherein there is access to energy for all, including consumers and industries) and sustainability (promoting energy sources that have lower impacts on the environment such as lower carbon footprints).
The second is 'transition readiness', which includes regulation (legal structures that facilitate energy transition), infrastructure, education, innovation and investment capacities.
The Index used 43 indicators under these broad categories using data from multiple sources and organisations, and scored countries on a scale of 0 to 100.
In 2025, 77 out of 118 countries (65%) recorded an increase in their overall ETI scores, with an average gain of 1.1% that signals 'a broad, though uneven, recovery in transition momentum', the Index report published on Wednesday (June 18) said.
Overall, advanced economies dominated the ETI rankings, accounting for 16 of the index's top 20 performers.
The top four are all Nordic countries: Sweden, followed by Finland, Denmark and Norway. Sweden, ranked first in the Index, scored 77.5, and had a system performance score of 77 and a transition readiness score of 78.1.
How India fared
At rank 71, India scored 53.3 on the Index. India's system performance score was 60.4 and transition readiness score 42.7.
Major economies 'showed selective gains with potential to lead', the Index report noted.
China topped the 'Emerging Asia' category which India is also part of, with a 2.2% year-on-year ETI score gain and the fifth-highest transition readiness score globally, which per the report, was 'driven by strong innovation ecosystems and financial capacity'.
The report noted that in the 2025 Index, India advanced in 'energy intensity, methane emissions and regulations and financial investments'.
It also claimed that over the past decade, India had 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'.
However, it does not provide details on how India did this.
Among the challenges that India faces are a consistent improvement in grid reliability, energy access for rural areas and further reducing dependence on imported energy.
'Further investment in infrastructure, renewables, labour force development and financing conditions could help boost the country's energy transition,' the report noted.
Overall, the report noted that one of the main challenges that several nations in Asia still face is their huge reliance on fossil fuels.
'While the ETI top ten continue to offer strong examples of long-term leadership, it is the top five largest economies – China, the US, the EU, Japan and India – that will ultimately determine the pace and direction of the global energy transition due to their sheer size,' the report said.
The report also underlined that several 'disruptions' – geopolitical, economic and technological – exposed vulnerabilities in global energy systems, thus 'heightening the urgency of securing more resilient, adaptive energy strategies'.
These included geopolitical tensions that have intensified, including in the Middle East and Africa.
Top among the global risk factors affecting energy transition are armed state conflicts, followed by extreme weather events and geoeconomic confrontation (such as the use of sanctions, tariffs and investment screening).

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

23 minutes ago

• Business Standard

Cognizant gets 21-acre plot in Andhra for 99 paise to build IT campus

The Andhra Pradesh government will allocate 21.31 acres of land to Cognizant Technology Solutions for a nominal lease price of just 99 paise. As part of the deal, the company is expected to invest ₹1,582.98 crore to set up an information technology (IT) campus in Visakhapatnam. Cognizant aims to create approximately 8,000 jobs in the region over a period of eight years, further boosting the state's IT ecosystem. The company sought 21.31 acres of land at Kapulauppada under the Visakhapatnam Metropolitan Region Development Authority. It plans to begin commercial operations by March 2029, with the entire project being 100 per cent self-funded. The deal is part of the state government's approval on Thursday of 19 industrial projects worth ₹28,546 crore, including ₹18,910 crore in investments by the Adani Group. Other major projects include Reliance Consumer Products investing ₹1,622 crore in Orvakal, Chinta Green Energy ₹2,323 crore in Kadapa, and Raymond ₹1,201 crore across various locations. The agreement with Cognizant follows state IT Minister Nara Lokesh's meeting with Cognizant Chief Executive Officer S Ravi Kumar at the World Economic Forum in Davos earlier this year, where Lokesh encouraged the company to consider setting up operations in Tier-2 cities like Visakhapatnam, according to Moneycontrol. Similar deal with TCS The decision also comes months after the state struck a similar deal with Tata Consultancy Services (TCS). Under that agreement, TCS will invest ₹1,370 crore to establish a development centre in the city, generating over 12,000 jobs in return for a 99-paise lease for 21.16 acres of land. 'With continuous follow-ups and discussions between the state government and TCS, (Nara) Lokesh has piloted an allotment of 21.16 acres of land in Vizag to TCS for a total consideration of 99 paise. It is a bold decision to signal to the industry that Andhra Pradesh is serious about attracting IT investments,' a government source told Business Standard at the time. The Cognizant deal is seen as another success for Lokesh, who has played a key role in driving IT growth and attracting global technology companies to the state. The state government has set a target of creating around 2 million jobs and aims to attract investments worth over ₹40 trillion by 2029. It has also announced a special IT and global capability centres policy to attract multinational firms with strong financial incentives.

Economic Times

an hour ago

• Economic Times

Norway plans temporary ban on power-intensive cryptocurrency mining

Norway aims to impose a temporary ban on the establishment of new data centres that mine cryptocurrency with the most power-intensive technology, in order to conserve electricity for other industries, the Nordic country's government said on Friday."The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible," Minister for Digitalization and Public Administration Karianne Tung said in a statement."Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community," she added.A temporary ban could be introduced during the autumn of 2025, the government said.

India Gazette

2 hours ago

• India Gazette

World Economic Forum report praises India's efforts in shaping global energy transition

New Delhi [India], June 20 (ANI): Ranked 4th among the world's five largest economies, India holds a critical position in shaping the global energy transition, not only due to its rapid economic growth but also because of its rising energy demand and increasing influence on global emissions and energy policy, according to a report by the World Economic Forum (WEF). The real measure of the world's shift to clean and sustainable energy lies in the hands of -- the United States, China, the European Union, Japan, and India. These five economies together make up about half of the world's population, GDP, and energy use. More significantly, they are responsible for nearly two-thirds of global emissions, giving them a major role in how quickly and effectively the planet can shift to cleaner energy. Over the past ten years, all five of these economic giants have made progress. India and China showed the most improvement, especially in expanding access to energy and preparing their systems for the future. 'Over the past decade, India 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,' said the WEF report In India, strong steps were taken to ensure more people have access to electricity and clean fuels, along with better energy laws and increased investments in solar, wind, and other renewable sources. India still faces challenges. The WEF report highlights the need to improve electricity supply in rural areas, reduce dependence on imported energy, and strengthen grid reliability. More investments in infrastructure, clean energy technologies, skilled workforce, and finance options will be key to moving forward. India's efforts have not gone unnoticed. The report praised India's National Green Hydrogen Mission programme, which supports clean energy industries in different states. For example, Gujarat's chemical industry, Tamil Nadu's renewable energy sector, and Odisha's steel plants are all being supported under this mission, aiming to reduce carbon emissions and boost exports. The WEF report stated, 'India made progress in lowering energy intensity and CH4 emissions, creating more favourable energy regulations and increasing clean energy investments.' The National Investment and Infrastructure Fund (NIIF) is another important step. It brings in global investors to support India's clean energy projects by reducing financial risks and encouraging private investment. India also made progress in using energy more efficiently and cutting methane emissions. While 77 of 118 countries improved their energy transition scores in 2025, only 28 per cent showed balanced progress across all key areas. India stands out as one of the few emerging economies, making strides on multiple fronts. (ANI)