After years of sluggish gains, the pace of global energy transition has picked up, according to the World Economic Forum (WEF).
The WEF has released a new Energy Transition Index (ETI), benchmarking 118 countries, recorded its strongest annual improvement in a decade – up 1.1 per cent year-on-year – signalling a broad-based but uneven recovery.
The latest data shows significant strides in energy equity and sustainability, buoyed by easing energy prices, targeted subsidy reforms and increased clean energy penetration.
Electricity systems reached a record 49 per cent clean energy share, with renewables, storage and AI-driven smart infrastructure accelerating decarbonisation efforts.
However, the report warns of persistent fragilities.
Energy security remains the lagging dimension, improving by just 0.4 per cent in 2025. Grid inflexibility, high import dependencies and sluggish diversification continue to expose vulnerabilities – particularly as energy demand surges from electrification and AI-driven data centres.
“Despite the rapid expansion of renewable energy and clean energy technology diffusion, energy and emission intensity remained relatively high,” the report states.
“Meanwhile, energy supply flexibility and diversity could be further strengthened to augment energy security.”
Investment momentum also appears at risk.
While clean energy investment surpassed US$2 trillion globally in 2024, annual growth slowed to 11 per cent – down from 29 per cent three years earlier. Financing challenges remain acute in emerging economies, where capital costs are up to seven times higher than in developed markets, despite accounting for over 80 per cent of new energy demand.
Only 28 per cent of countries made progress across all three pillars of the energy trilemma – security, equity and sustainability.
Sweden, Finland and Denmark retained the top rankings, underpinned by robust infrastructure, diversified low-carbon energy systems and long-term policy coherence.
China reached a record 12th place, reflecting its scale in clean energy investment and innovation.
The US, ranked 17th, led the energy security dimension, while Nigeria and the United Arab Emirates posted some of the fastest year-on-year improvements, driven by infrastructure upgrades and reforms.
The report identifies five strategic priorities to build resilience and sustain progress: adaptive policy frameworks, modernised infrastructure, skilled workforce investment, technology commercialisation and targeted capital deployment in developing economies.
“There is no single blueprint,” the Forum states.
“Countries will follow different paths at different speeds… Ensuring a durable and inclusive transformation requires alignment between ambition, finance and delivery – guided by market signals, grounded in local realities and supported by international cooperation.”