Geneva: The World Economic Forum (WEF) 2025 Energy Transition Index has reported unprecedented progress since pre-COVID-19 times, indicating that 65% of the surveyed countries have improved their energy transition performance. The report highlights that 28% of these countries have advanced across all core dimensions of energy system performance, which include security, sustainability, and equity.
According to BERNAMA News Agency, the WEF’s report titled ‘Fostering Effective Energy Transition’ reveals that while advanced economies are facing challenges like grid congestion and high prices, regions such as Emerging Europe and Emerging Asia are making significant gains. These improvements are attributed to targeted reforms, enhanced infrastructure, and increased investment in clean energy.
Roberto Bocca, head of WEF’s Centre for Energy and Materials, commented that energy systems are evolving at different speeds, but there is a visible holistic approach and progress. He noted that it is promising to see that major energy consumers and producers, including Brazil, China, the United States, and Nigeria, are advancing across multiple dimensions. However, he emphasized the need for urgent investment in rapidly growing emerging economies to maintain this progress.
The report recorded a 1.1% year-on-year gain in the index, marking the fastest improvement since pre-COVID levels. It further stated that the equity dimension saw the strongest gains, supported by stable energy prices and subsidy reductions, while sustainability improved due to increased renewable energy adoption and better energy efficiency. Nevertheless, energy security has stagnated because of inflexible power systems, dependency on imports, and limited diversification.
Despite a US$2 trillion investment in clean energy in 2024, emissions reached a record 37.8 billion tonnes during the hottest year recorded, driven by a 2.2% rise in energy demand from artificial intelligence, data centers, cooling, and electrification.
The report outlined three system-level priorities to sustain the energy transition. These include redefining energy security to encompass grid resilience and digital infrastructure, correcting capital imbalances, especially in emerging economies, and addressing infrastructure bottlenecks like permitting delays and workforce gaps, which hinder progress more than technology availability.
To maintain momentum and build resilience, the report urges for adaptive policies to attract long-term capital, foster cooperation, modernize infrastructure, invest in workforce skills and innovation, scale clean technology deployment in hard-to-abate sectors, and boost capital investment in developing economies.
The report noted that since 2021, over 80% of energy demand growth has stemmed from emerging and developing economies, yet more than 90% of clean energy investment has been directed toward advanced economies and China, highlighting a discrepancy between capital flows and future demand. Emerging Asia, led by China and Malaysia, showed regulatory improvements of 2.6% and a significant increase in clean energy investment by 18.7%.
The WEF report, developed in collaboration with Accenture, benchmarked the performance of energy systems across 118 countries, evaluating them based on three performance dimensions-security, sustainability, and equity-and five readiness factors-political commitment, finance and investment, innovation, infrastructure, and education and human capital.