The World Economic Forum (WEF) released its Fostering Effective Energy Transition 2025 report in collaboration with Accenture in June 2025. The report presents the latest findings from the Energy Transition Index (ETI), which tracks the progress of countries around the world as they shift towards cleaner and more sustainable energy systems. The data shows that while the global energy transition is moving forward, the rate and resilience of change continue to differ significantly across countries.
Overview of the Energy Transition Index
The ETI evaluates energy systems in 118 countries by measuring their performance across three main dimensions: (i) energy security, (ii) sustainability, and (iii) equity. In addition, it assesses five key readiness factors that enable successful energy transition: (i) regulations and political commitment, (ii) finance and investment, (iii) infrastructure, (iv) innovation, and (v) education and human capital.
Over the past decade, nearly half of all countries have seen an improvement in their energy performance. However, the report also notes that progress is uneven. While some nations are advancing rapidly, others lagged due to various challenges.
Key Drivers of Progress
Notable gains in energy equity and sustainability have been observed. These improvements have been driven by falling energy prices, reforms to energy subsidies, lower energy and emissions intensity, and the increased use of clean energy sources. However, progress in energy security has been more limited. Many countries continue to rely heavily on energy imports, diversifying energy investment portfolios, and face challenges with inflexible power systems.
The report further highlights a slowdown in transition readiness. Although countries have made significant improvements in regulation, infrastructure, education, innovation, and investment capacities in the past, recent trends indicate that this momentum is weakening and has slowed to just 0.8 per cent year-over-year (YoY), falling well below its 10-year average.
Challenges Facing Global Energy Systems
Despite these advancements, global energy systems are experiencing increasing pressure from various disruptions. Climate change, geopolitical tensions, and rapid technological change are all contributing to instability. In 2024, energy supply chains and markets showed signs of vulnerability. Conflicts disrupted trade flows and the rising energy demand, driven in parts by data centres powered by artificial intelligence (AI), contributed to a 2.2 per cent increase in global energy use, the fastest in recent years.
While renewable energy capacity expanded and energy efficiency improved, global energy-related carbon dioxide (CO2) emissions still reached a record high of 37.8 billion tonnes. Clean energy investment rose up to US$ 2 trillion, doubling the 2020 level. However, this still falls short of the estimated US$ 5.6 trillion needed annually by 2030. Furthermore, annual investment growth slowed to 11 per cent, compared to 24–29 per cent over the last three years.
Performance Trends in the 2025 ETI
The latest ETI data shows a 1.1 per cent increase in the global average score YoY, more than double the average pace of the past three years. Improvements were strongest in system performance, which rose by 1.2 per cent YoY. Within this category, equity saw the most significant recovery, nearly returning to pre-COVID-19 levels. This was supported by more stable energy prices and the reform of long-standing subsidies. Sustainability continued its steady upward path, reflecting greater adoption of clean energy technologies. Energy security, however, saw minimal progress due to continued dependence on imports and lack of diversification. Transition readiness slowed to just 0.8 per cent YoY, falling short of its 10-year average.
Country and Regional Highlights
In 2025, about 65 per cent of the countries measured improvement in their ETI scores. Yet, only 28 per cent showed progress across all three dimensions—security, equity, and sustainability. This clearly indicates that the gains remain fragmented.
Sweden holds the top position globally, demonstrating strong performance across all aspects of energy. Finland, Denmark, Norway, and Switzerland complete the top five. These countries benefit from strong infrastructure, diversified low-carbon energy sources, and long-term policy consistency. Austria, Latvia, and the Netherlands closely followed the top-ranked countries, demonstrating strong results in energy equity, clean energy investments, and the expansion of renewable energy capacity. Germany and Portugal rounded out the top 10 with similarly solid performances.
China has risen to the 12th place, propelled by the world’s largest investments in clean energy and strong innovation capabilities. Brazil secured the 15th position, leading Latin America, thanks to its diversified energy mix, relatively low energy prices, and growing adoption of clean energy. The United Kingdom followed closely in 16th place. The United States ranks 17th, showing particular strength in energy security and sustainability.
Pakistan, at 101st, faces notable challenges in both energy performance and readiness, while the Democratic Republic of the Congo, ranking lowest at 118th, highlights significant systemic deficiencies.
Regional trends reinforced the idea that the energy transition is progressing at multiple speeds. Emerging Europe led in infrastructure (+8.3 per cent) and education (+5.8 per cent) gains, while emerging Asia saw the most progress in investment (+18.7 per cent) and regulations (+2.6 per cent). Sub-Saharan Africa demonstrated improvements in political commitment and financial flows, highlighting the variety of transition pathways across regions.
According to the WEF, the five largest economies—China, the US, the European Union, Japan, and India—would play a decisive role in shaping the speed and trajectory of the global energy transition, primarily because of their significant economic scale. Collectively, these five economies represent roughly half of the world’s GDP, population, and total energy supply (TES), while also being responsible for nearly two-thirds of global emissions. Their substantial influence stems from their consumption habits, investment decisions, and policy directions.
Outlook on Global Energy System
As global energy systems face mounting challenges, the ETI report emphasises the need for adaptive and locally tailored solutions. Addressing climate change, maintaining affordability, and building resilience would require a balanced approach to scaling clean energy.
Accelerating innovation would be the key. The potential of AI, smart grids, clean fuels, energy storage, and efficiency improvements must be fully leveraged to maintain momentum. Without urgent action and sustained investment, the progress achieved so far risks being undermined by future disruptions.
Five Key Actions for a Resilient and Inclusive Energy Transition
To maintain progress and strengthening resilience in the global energy transition, the report has outlined five essential actions:
(i) Establish Stable and Adaptive Policy Frameworks The first recommended action is to implement policy frameworks that are both stable and flexible, encouraging long-term investment and fostering international collaboration. These frameworks should be globally consistent but adaptable to local circumstances, supported by strategic partnerships. Incentives should be tailored to a country’s unique strengths and used to promote regional cooperation in infrastructure development, energy integration, and supply chain coordination. A strong example of this approach is India’s National Green Hydrogen Mission. This initiative provides targeted incentives based on each state’s industrial capabilities, such as Gujarat’s petrochemical industry, Tamil Nadu’s renewable energy sector, and Odisha’s steel production, boosting domestic manufacturing, export potential, and alignment with broader decarbonisation objectives.
(ii) Upgrade Grid Infrastructure Using Digital Tools The second recommendation is to modernise energy grids using digital technologies for better planning and integration of renewables, storage systems, and distributed energy resources. These upgrades aim to ensure that clean energy is delivered more reliably and efficiently. Reducing energy losses and improving system-wide efficiency are further critical goals. Saudi Arabia’s efforts through the Saudi Electricity Company are highlighted as an example. The company deployed 11 million smart metres, enabling real-time energy monitoring, improving grid reliability, and laying the groundwork for broader adoption of renewable energy.
(iii) Align Workforce Development with Market Needs The third action focuses on strengthening education, training, and workforce planning to meet the demands of a growing clean energy economy. This includes aligning vocational programme and job training with actual labour market needs to develop skilled and inclusive workforce capable of supporting renewable energy projects, improving energy efficiency and ensuring a fair transition. Australia’s Clean Energy Training Hubs serve as a model here. These hubs partner with technical schools, energy companies, and labour unions to provide practical training in solar, wind, and battery technologies, helping bridge the gap between workforce supply and industry demand.
(iv) Accelerate Commercialisation of Clean Technologies The fourth recommendation emphasises the need to speed up the development and scaling of clean technologies, especially in hard-to-decarbonise sectors. This could be achieved by fostering international cooperation in research and development, linking R&D efforts with pilot programmes and early adoption strategies. Doing so shortens testing timelines, filters out unworkable technologies more quickly and helps scale promising solutions in areas such as heavy industry, transportation, and hydrogen. One example is the US Department of Energy’s US$ 7 billion investment in regional hydrogen hubs. These hubs support early-stage hydrogen technologies through public-private partnerships playing a vital role in decarbonising transport and manufacturing industries.
(v) Boost Capital Investment in Developing Economies
The final action calls for increasing clean energy investment in developing regions. This involves using risk-sharing mechanisms, developing local capital markets, and creating targeted public-private investment platforms. These strategies aim to make clean energy and energy efficiency projects more attractive and financially viable in areas where investment is most needed. India’s National Investment and Infrastructure Fund (NIIF) is highlighted as an example. It functions as a sovereign-backed platform that collaborates with global investors to co-finance infrastructure projects. By offering credit enhancements, the NIIF helps reduce risk and attracts large-scale private investment into clean energy.
India’s Performance
India ranks 71st out of 118 countries in the 2025 ETI, published by the WEF. This marks a drop from its previous position of 63rd. Despite the decline in rank, the report highlights that India, along with China, achieved the most significant improvements among large economies. These gains are primarily seen in expanding energy access and enhancing transition readiness.
The report recognises India’s notable progress in energy efficiency and its growing capacity for energy-related investments, positioning the country as one with strong potential for future improvements. For 2025, India’s overall ETI score is 53.3, with a sub-score of 60.4 for system performance, and 42.7 for transition readiness.
India’s advancement in the ETI is credited to several important factors:
- A reduction in energy intensity, indicating more efficient use of energy
- A better regulatory environment and increased financial investment, particularly in clean and renewable energy
- Initiatives to reduce methane emissions, supporting broader climate action efforts
Despite these gains, India’s score in transition readiness remains relatively low at 42.7. This category includes critical areas such as education, innovation, infrastructure, regulation, and finance. Compared to high-ranking countries like Sweden and Finland, India’s lower score suggests ongoing systemic challenges that could impact its ability to scale and sustain progress over the long term.
Over the past 10 years, India has made meaningful progress in promoting energy equity, especially by expanding access to electricity and clean cooking fuels. The country has further improved its regulatory framework and stepped-up investment in renewable and clean energy technologies. Reductions in both energy intensity and methane emissions further demonstrate India’s commitment to cleaner energy future.
The WEF notes that India could continue advancing in energy security and equity by improving grid reliability, extending energy access in rural areas and reducing its reliance on imported energy sources.
Looking ahead, India has opportunities to further its energy transition by investing in key areas, such as infrastructure, renewable energy, workforce development, and improving financial conditions. These steps could help strengthen its transition readiness and enable more sustainable and resilient energy systems.
While India has made notable progress in energy equity, particularly in rural electrification and access to clean fuels, challenges still remain. The flexibility of the power grid, the diversification of energy supply, and the spread of clean energy solutions beyond the electricity sector need further attention.
The report underlines that building transition readiness is crucial for India’s long-term energy future. To succeed, India must go beyond short-term efficiency improvements and focus on strengthening foundational systems like education, innovation, and regulatory frameworks.
Ultimately, India’s future success would depend on aligning immediate gains in efficiency and access with long-term strategies that promote resilience, innovation, and scalable energy solutions across the country.
Conclusions
To conclude, the report highlights the fact that though the energy transition is progressive, it has to have a smooth and secure process. The report calls for a focus on strengthening energy security, speeding up the transition readiness, and ensuring that short-term gains are stable and helpful in making energy future sustainable.
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