Energy Transition Index 2026

The Energy Transition Index 2026 reveals a stall in global momentum, with overall scores remaining flat (+0.03%) as gains in system performance were offset by the first decline in transition readiness in over a decade (-0.76%). While clean energy investment reached a record $2.3 trillion in 2025, the report highlights a widening gap between deployment and system integration, with over 2,500 GW of projects awaiting grid connections worldwide. Geopolitical fragmentation, exemplified by trade restrictions affecting $2.6 trillion of global commerce and disruptions in the Strait of Hormuz, has repositioned energy security as a core determinant of economic competitiveness. The report notes a multi-speed transition where advanced economies, particularly Nordic countries like Sweden, continue to lead, while emerging economies face financing costs two to three times higher than advanced markets. Key systemic pressures include a surge in electricity demand driven by AI-enabled data centres—projected to reach 945 TWh by 2030—and a high concentration of critical mineral refining in China. The document concludes that sustaining the transition now requires a shift from simple technology substitution to systemic transformation focusing on grid resilience, diversified supply chains, and stable policy frameworks.

• Global energy transition progress has effectively stalled in 2026, with the overall Energy Transition Index (ETI) score increasing by only 0.03%. This stagnation is driven by a divergence where incremental gains in system performance (+0.43%) were cancelled out by the first decline in transition readiness in over a decade (-0.76%).
• Transition readiness is eroding across multiple dimensions, with finance and investment recording the sharpest fall (-1.8%), followed by regulation and political commitment (-1.2%) and innovation (-1.1%). While total clean energy investment hit $2.3 trillion in 2025, renewable energy investment specifically fell by 9.5%.
• Energy security has declined by 0.9%, becoming the only system performance dimension to deteriorate. This was primarily driven by a 3.0% drop in reliability, reflecting increased power system stress from rising electricity demand and declining network performance in countries such as France, Italy, and Australia.
• A critical 'infrastructure-limited' phase has emerged, where the pace of clean energy deployment is outpacing the ability of grids to integrate it. More than 2,500 GW of renewable energy, storage, and large-load projects are currently waiting in grid connection queues globally.
• Artificial Intelligence (AI) and digital infrastructure are creating massive new electricity loads. Data centre electricity consumption was approximately 486 TWh in 2025 and is projected to reach 945 TWh by 2030, potentially exceeding 1,700 TWh by 2035 in a high-case scenario.
• Geopolitical fragmentation is severely impacting supply chains and trade. By mid-2025, trade restrictions affected $2.64 trillion of global commerce, and over half of critical transition minerals are now subject to export controls.
• Investment in the energy transition remains highly concentrated, with 75% of clean energy investment flowing to a small number of markets (primarily the US, China, and Europe). Emerging economies, which will drive 80% of future electricity demand growth, face financing costs two to three times higher than advanced economies.
• The 2026 disruption of energy flows through the Strait of Hormuz—which handles roughly a quarter of global seaborne oil and one-fifth of global LNG trade—triggered acute price shocks and exposed the vulnerability of import-dependent emerging economies.
• Sweden leads the 2026 ETI rankings for the third consecutive year. Other top performers include Finland and Denmark, while China (14th), Brazil (17th), and the US (19th) also feature in the top 20.

APA

World Economic Forum (2026). Energy Transition Index 2026. https://reports.weforum.org/docs/WEF_Energy_Transition_Index_2026.pdf

Chicago

World Economic Forum. Energy Transition Index 2026. 2026. https://reports.weforum.org/docs/WEF_Energy_Transition_Index_2026.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Energy Transition Index 2026 |date=June 2026 |url=https://reports.weforum.org/docs/WEF_Energy_Transition_Index_2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2026energy, author = {{World Economic Forum}}, title = {{Energy Transition Index 2026}}, institution = {World Economic Forum}, year = {2026}, month = jun, url = {https://reports.weforum.org/docs/WEF_Energy_Transition_Index_2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }