Global energy transition picks up pace amid rising challenges: WEF report
The World Economic Forum (WEF) Energy Transition Index 2025 report has indicated that global progress towards secure, sustainable, and equitable energy is picking up pace after years of moderate improvements.
However, significant challenges such as geopolitical tensions, investment shortfalls, and a widening gap between clean energy innovation and deployment in areas that need it most could offset the progress.
The 'Fostering Effective Energy Transition 2025' report benchmarks the energy systems of 118 countries, evaluating them across security, sustainability, and equity dimensions. Their readiness in terms of political commitment, finance and investment, innovation, infrastructure, education and human capital will also be explored.
Notably, 65% of countries have improved their scores on the Energy Transition Index, with 28% showing advancement across all core dimensions in 2025.
While advanced economies face challenges with grid congestion, elevated energy prices, and supply chain constraints, regions such as Emerging Europe and Emerging Asia are experiencing progress, driven by specific policy reforms, improved infrastructure, and a surge in clean energy investments.
The 2025 Energy Transition Index posted a 1.1% year-on-year improvement, marking the fastest growth since pre-Covid.
Equity saw the most significant gains, attributed to stable energy prices and subsidy reductions, while sustainability benefited from a rise in renewable energy use and energy efficiency advancements.
Energy security saw little change, hindered by rigid power systems, reliance on imports, and limited diversification.
Despite a $2tn investment in clean energy last year, emissions reached a record 37.8 billion tonnes in the warmest year on record, with energy demand climbing by 2.2%, driven by AI, data centres, cooling, and electrification.
Sweden, Finland, and Denmark lead the Energy Transition Index. Norway and Switzerland complete the top five while Austria, Latvia, and the Netherlands also performed well, particularly in equity, clean energy capital flows, and renewable energy capacity expansion.
China achieved a record 12th place, attributed to its innovation and clean energy investment. Brazil led Latin America in 15th place, with greater energy diversification, lower prices, and increased clean energy use.
The UK and the US placed 16th and 17th, respectively, with the US ranking first in energy security due to its diverse energy system and innovation.
World Economic Forum Centre for Energy and Materials head Roberto Bocca said: 'Energy systems are evolving at varying speeds.'
The report advocates for flexible policies that can draw in sustained capital investment, encourage collaboration, upgrade existing infrastructure, channel funds into workforce development and innovation, expand the deployment of clean technologies, and boost financial investment in the economies of developing nations.
Emerging Europe showed the strongest gains, with Latvia scoring highest and Bosnia and Herzegovina growing the most. Emerging Asia is led by China and followed by Malaysia.
Sub-Saharan Africa also made progress, with Nigeria climbing from 109th in 2016 to 61st in 2025, highlighting the impact of targeted reforms and localised transition strategies.
"Global energy transition picks up pace amid rising challenges: WEF report" was originally created and published by Energy Monitor, a GlobalData owned brand.
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