Fostering Effective Energy Transition

The 2024 Energy Transition Index (ETI) shows that while global average scores have reached record highs, the pace of progress has slowed due to economic volatility and geopolitical tensions. Advanced economies, particularly in Northern Europe, lead the rankings, while China and Brazil show strong improvement. The report highlights a critical imbalance: energy security is often prioritized at the expense of equity and sustainability. It emphasizes the need for tailored transition pathways based on region, income, and local resources, and calls for a significant increase in clean energy investment for emerging and developing economies to meet COP28 targets.

• Global average Energy Transition Index (ETI) scores have reached their highest levels, with 107 out of 120 countries making progress over the last decade, although the rate of improvement has decreased over the past three years.
• There is a significant imbalance in the 'energy triangle'; while energy security risks are being mitigated, this often occurs at the cost of equity and sustainability. Only 17% of countries showed simultaneous improvement across all three dimensions in the past year.
• Clean energy investment is heavily concentrated in advanced economies and China. In 2023, global clean energy investments reached $1.8 trillion, but $8 of every $10 of current renewable energy investment goes to projects in developed economies plus China.
• China is a dominant force in the transition, commissioning as much solar photovoltaic (PV) capacity in 2023 as the entire world did in 2022, with wind additions growing by 66% year-on-year.
• Energy equity has faced setbacks due to rising energy prices and the reintroduction of fossil fuel subsidies, which exceeded $1 trillion for the first time in 2022.
• Transition readiness has improved globally, particularly in regulation, political commitment, and human capital, with clean energy jobs representing approximately 50% of all energy sector jobs in 2023.
• Generative AI presents a significant opportunity for the energy industry, with the potential to generate $0.3-0.5 trillion in annual savings and improve productivity in nearly half of industry activities by 2030.
• Sub-Saharan Africa has shown the strongest growth in ETI scores over the last decade (10%), primarily driven by improvements in energy access and regulation.
• To limit global warming to 1.5°C, clean energy investment in emerging economies outside China must increase more than sixfold, from $270 billion currently to $1.6 trillion by the early 2030s.

APA

World Economic Forum (2024). Fostering Effective Energy Transition. https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2024.pdf

Chicago

World Economic Forum. Fostering Effective Energy Transition. 2024. https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Fostering Effective Energy Transition |date=June 2024 |url=https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024fostering, author = {{World Economic Forum}}, title = {{Fostering Effective Energy Transition}}, institution = {World Economic Forum}, year = {2024}, month = jun, url = {https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }