Countries across the world have reached record highs in their Energy Transition Index scores, the World Economic Forum’s Fostering Effective Energy Transition report for 2024 says. However, economic volatility, heightened geopolitical tensions and technological shifts have led to a slowdown in the pace of the transition.
The annual report produced by the Forum, in collaboration with Accenture, says 107 of the 120 countries surveyed have demonstrated progress on their energy transition journeys in the past decade.
Northern European countries top the index
Advanced economies are generally the top performers in the Energy Transition Index (ETI), with Sweden, Denmark, Finland and Switzerland leading the rankings. France, meanwhile, has entered the top five performers due to its effective energy efficiency policies, resulting in a 12% reduction in energy intensity.
The top 10 countries collectively only represent 2% of the global population and contribute just 1% of energy-related CO2 emissions, but major emerging economies like China and Brazil have also made significant progress, according to the report. It highlights that China commissioned as much solar photovoltaic (PV) capacity in 2023 as the entire world did in 2022. Meanwhile, Brazil’s long-term plan for hydropower and biofuels has been key in attracting investment.
Common characteristics of the top performers include enhanced energy security through a diverse mix of sources, improved energy intensity, an increasing share of clean energy, a carbon pricing mechanism, and a supportive regulatory environment.
Estonia, Ethiopia, and Lebanon have seen the fastest improvements in the past five years, the report says. This is thanks to their prioritizing of off-grid renewable energy to enhance access and sustainability.
The developing countries leading the way for momentum in their energy transition are Lebanon, Ethiopia, Tanzania, Zimbabwe, and South Africa. The report spotlights these countries and in particular, their commitment to reducing fossil fuel subsidies, decentralizing renewable energy and boosting the number of clean energy jobs