Fostering Effective Energy Transition

The 2023 Energy Transition Index (ETI) report reveals that while global energy transition scores have risen by 10% since 2014, progress has plateaued in the last three years due to equity and affordability challenges. The report introduces 'transition momentum' to track the speed of change, finding that only India and Singapore are advancing across all three pillars of the 'energy triangle': equity, security, and sustainability. While Nordic countries continue to lead, emerging economies like China and India are showing significant improvements in transition readiness. The report warns that the current trajectory prioritizes security and sustainability at the expense of equity, particularly in low-income countries facing fuel price inflation and debt burdens.

• Global Energy Transition Index (ETI) scores have increased by 10% since 2014, but growth has plateaued over the last three years due to challenges regarding equity and inclusiveness.
• The report identifies a critical imbalance in the 'energy triangle', noting that only 18% of countries have achieved a balanced progress across the equitable, secure, and sustainable dimensions.
• India and Singapore are the only two countries among 120 analyzed that are simultaneously advancing across all three dimensions of energy system performance: equitable, secure, and sustainable.
• Energy equity is under significant pressure, with approximately 20% of the global population living in countries where progress on energy equity is slowing or retracting.
• China has significantly improved its transition readiness, gaining 43% in its scores over the last decade, which is roughly double the global average, placing it in the top 20 countries.
• Investment in low-carbon energy technologies reached a record high of $1.3 trillion in 2022, representing a 19% increase from 2021 and a 70% increase from 2019 levels.
• There is a risk of a 'harmful subsidy race' where advanced economies with greater fiscal capacity can outcompete emerging and developing economies in attracting investments.
• The cost of reducing emissions in emerging economies is estimated to be approximately half of the cost in advanced economies.
• Only six countries directed more than 1% of their GDP toward renewable energy investments in 2022, with China leading at over 1.5% of GDP.

APA

World Economic Forum (2023). Fostering Effective Energy Transition. https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2023.pdf

Chicago

World Economic Forum. Fostering Effective Energy Transition. 2023. https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Fostering Effective Energy Transition |date=June 2023 |url=https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023fostering, author = {{World Economic Forum}}, title = {{Fostering Effective Energy Transition}}, institution = {World Economic Forum}, year = {2023}, month = jun, url = {https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }