Global energy transition gains ground, but security and capital challenges persist

India advanced on energy efficiency and investment capacity, says WEF Report

- BY SATYAKI CHAKRABORTY

Global progress towards secure, equitable and sustainable energy is accelerating after years of sluggish gains, according to a World Economic Forum report released on June 19 in Geneva. 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.

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.

“Energy systems are evolving at varying speeds,” said Roberto Bocca, Head of the Centre for Energy and Materials, World Economic Forum. “We are seeing more holistic approaches and visible progress. It is encouraging that 28% of countries, including major energy consumers and producers like Brazil, China, the US and Nigeria, have advanced across multiple dimensions. Staying on track demands urgent investment in fast-growing emerging economies.”