Recently, the World Economic Forum (WEF) has released the annual rankings of the global Energy Transition Index.
The Energy Transition Index benchmarks 115 countries on the current performance of their energy systems across economic development and growth, environmental sustainability and energy security and access indicators and their readiness for transition to secure, sustainable, affordable and inclusive energy systems.
What is Energy Transition?
An ‘energy transition’ is defined as a change in the state of an energy system.
A prime example is the change from a preindustrial system relying on traditional biomass and other renewable power sources (wind, water, and muscle power) to an
industrial system characterized by pervasive mechanization (steam power) and the use of coal.
In recent years, the term ‘energy transition’ has been coined in the framework of a move towards sustainability through increased integration of renewable energy in the realm of daily life.
• Global average ETI scores. have increased in 8 out of the last 10 years.
• Only 25% of countries have balanced the three imperatives of the energy triangle.
• Progress in energy access and environmental sustainability is strong, but economic growth
• Top 10 countries account for only 3% of global CO2 emissions from fuel combustion.
• Only 13 out of 115 countries have made steady gains in the past decade.
• Speed of energy transition is fast in emerging economies, but large gaps remain.
About other countries:
- Out of 115 countries, 92 countries have made progress over the past 10 years, but only 68 have improved their scores by more than two percentage points, showing the need for renewed focus and resilience to meet the climate goals of the next decade.
- Sweden leads the global rankings, followed by Norway and Denmark.
- Among the world’s 10 largest economies, only the United Kingdom and France feature in the top 10.
- The Top 10 account for only around 3% of energy-related CO2 emissions and around 2% of the global population.
- Notably, large emerging centers of demand, such as China and India, have seen strong improvements.
- China’s improvements primarily result from reducing the energy intensity of the economy, gains in decarbonizing the energy mix through the expansion of renewables and strengthening the enabling environment through investments and infrastructure.
Scores in Brazil, Canada, Malaysia, Singapore and Turkey have been relatively stable.
India’s Rank and Reason:
- India has been ranked at the 87th position among 115 countries in the Energy Transition Index (ETI).
- India has targeted improvements through subsidy reforms an rapidly scaling energy access, with a strong political commitment and regulatory environment for the energy transition.
• Despite growing momentum, progress in the energy transition requires further acceleration.
• For this reason, and considering the impact of the COVID-19 pandemic, it is critical to focus on the resilience of the energy transition.
• As the risk landscape evolves, the transition will fail to deliver the step-change required without building in greater resilience.
• The risks facing energy transition are evolving, threatening to derail momentum for change. Rising social inequalities, international cooperation challenges, and geopolitical shifts call for an inclusive and holistic approach.
• For robust and resilient progress, energy transition needs to be firmly rooted in legislation, consumer awareness, infrastructure and investments.
World Economic Forum
It is a Swiss non-profit foundation established in 1971, based in Geneva, Switzerland.
Recognized by the Swiss authorities as the international institution for public-private
cooperation, its mission is cited as, “committed to improving the state of the world by engaging
business, political, academic, and other leaders of society to shape global, regional, and industry
Major reports published by WEF:
– Global Competitiveness Report
– Global IT Report
– Global Gender Gap Report
– Global Risk Report
– Global Travel and Tourism Report