Global progress towards secure, equitable and sustainable energy is accelerating after years of sluggish gains, according to a World Economic Forum (WEF) report. However, rising geopolitical tensions, investment gaps, and a growing disconnect between clean energy innovation and deployment where it is needed most threaten to undermine momentum, reported WAM.
The Fostering Effective Energy Transition 2025 report, developed in collaboration with Accenture, benchmarks the performance of energy systems of 118 countries across three performance dimensions – security, sustainability and equity – and five readiness factors: political commitment, finance and investment, innovation, infrastructure, and education and human capital. In 2025, 65% of countries improved their Energy Transition Index scores, with 28% advancing across all three core dimensions.
While advanced economies grapple with grid congestion, high prices and delivery bottlenecks, regions like Emerging Europe and Emerging Asia are making gains, driven by targeted reforms, improved infrastructure and growing clean energy investment.
The 2025 Energy Transition Index recorded a 1.1% year-on-year gain – the fastest since pre-COVID levels. Equity showed the strongest gains, aided by stable energy prices and subsidy cuts, while sustainability improved thanks to increased renewable energy adoption and improvements in energy efficiency. But energy security stagnated due to inflexible power systems, import reliance and limited diversification.
Despite $2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tons in the hottest year on record, as energy demand rose 2.2% driven by artificial intelligence (AI), data centres, cooling and electrification.
Sweden, Finland and Denmark topped the Energy Transition Index, reflecting their long-standing policy commitment, robust infrastructure and diversified low-carbon energy systems. Norway and Switzerland rounded out the top five, underscoring renewed momentum in their energy transition. Austria, Latvia and the Netherlands followed closely, with strong performances in equity, clean energy capital flows and renewable energy capacity buildout. Germany and Portugal completed the top 10.
Among the top 20, China reached a record 12th place, fuelled by its scale and leadership in innovation and clean energy investment. Brazil ranked 15th, leading Latin America with greater energy diversification, lower prices and rising clean energy use. The United Kingdom placed 16th, while the US rose to 17th overall and ranked 1st in energy security, supported by a diversified energy system and strong innovation.
To sustain momentum and build resilience, the report calls for adaptive policies to attract long-term capital and foster cooperation; modernise infrastructure; invest in workforce skills and innovation; scale deployment of clean tech, especially in hard-to-abate sectors; and enhancing capital investment in developing economies.
