The World Economic Forum (WEF) releases the Global Energy Transition Index, which monitors the countries on the current performance of their energy systems across various aspects.
The Energy Transition Index (ETI) is a fact-based ranking intended to enable policy-makers and businesses to plot the course for a successful energy transition. The benchmarking of energy systems is carried out across the countries annually. The ETI measures the countries’ energy system performance and transition readiness. It also incorporates macroeconomic, social, institutional, and geopolitical conditions, therefore, provide the enabling conditions for an effective energy transition.
Overview of the Global Energy Transition Index 2021
| Released by | World Economic Forum |
| Top ten countries | 1. Sweden 2. Norway 3. Denmark 4. Switzerland 5. Austria 6. Finland 7. The United Kingdom 8. New Zealand 9. France 10. Iceland |
| India Ranks | 87th position |
About the Global Energy Transition Index 2021
The Global Energy Transition Index 2021 was released by the World Economic Forum, prepared in collaboration with Accenture.
The Index benchmarks 115 countries on the current performance of their energy systems across three dimensions: Economic development and growth, Environment sustainability, and Energy security and access indicators. The countries are also benchmarked based on their readiness for transition to secure, sustainable, affordable and inclusive energy systems.
Key Highlights of the Global Energy Transition Index 2021
- Sweden ranked first in the Global Energy Transition Index 2021, followed by Norway and Denmark.
- Among the world’s ten largest economies, only the United Kingdom and France feature in the top ten countries in the Index.
- The ten countries, which topped the Index, accounts for only around 3% of the Energy-related CO2 emissions and around 2% of the Global Population.
- Notably, large Emerging Centers of Demand, such as India and China, have seen improvements.
- India ranked at the 87th position among the 115 countries in the Global Energy Transition Index 2021.
- China ranked at the 68th position out of 115 countries in the Global Energy Transition Index 2021.
- Scores in Canada, Brazil, Malaysia, Singapore, and Turkey have been relatively stable.
- Progress in Energy access and Environmental sustainability is strong, but Economic growth challenges remain.
- Only 25% of the countries have balanced the three imperatives of the energy triangle.
- The Global average ETI scores have increased in 8 out of the last 10 years.
- The 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 gap remain.
- Zimbabwe is the last ranked country at 115th position in the Index.
Report on India and China
As per the report, China ranked at 68th and India at 87th have made better improvements in energy systems over the past decade, even though Coal continues to play a significant role in their energy mix. Both India and China together account for one-third of the global energy demand.
According to the report, India has targeted the improvements through the subsidy reforms and by rapidly scaling the energy access with a regulatory environment for the energy transition. On the other hand, China has brought improvements resulting from strengthening enabling environment through infrastructure & investment and gains in decarbonizing the energy mix through the expansion of renewable resources.
Positive Indication
The latest report by the WEF is based on a revised ETI methodology, which takes into account the recent changes in the global energy landscape and the increasing urgency of climate change action.
According to the report, 92 out of 115 countries on the ETI increased their aggregate score over the past ten years. This result on the index affirms the positive direction and steady momentum of the global energy transition.