Jun 20, 2025
The global shift towards renewable energy is accelerating in the face of increasing challenges.
The World Economic Forum (WEF) Energy Transition Index 2025 report indicates that global advancements toward secure, sustainable, and equitable energy are accelerating after a period of slow improvement. However, challenges like geopolitical tensions, insufficient investments, and an increasing gap in clean energy innovation and deployment could hinder this progress.
The ‘Fostering Effective Energy Transition 2025’ report assesses the energy systems of 118 countries based on security, sustainability, and equity. It also examines their readiness regarding political commitment, financing, innovation, infrastructure, education, and human capital.
Notably, 65% of countries improved their Energy Transition Index scores, with 28% advancing across all key areas in 2025. Advanced economies are grappling with issues such as grid congestion and high energy prices, while regions like Emerging Europe and Emerging Asia are making headway due to specific policy reforms and increased clean energy investments.
The 2025 Energy Transition Index recorded a 1.1% year-on-year improvement, the fastest growth since before the COVID-19 pandemic. Equity saw the most significant progress due to stable energy prices and subsidy cuts, while sustainability improved due to a rise in renewable energy usage and energy efficiency.
Energy security experienced minimal change, affected by inflexible power systems, dependency on imports, and limited diversification. Despite a $2 trillion clean energy investment last year, emissions hit a record 37.8 billion tonnes, with energy demand growing by 2.2%, influenced by AI, data centers, cooling, and electrification.
Sweden, Finland, and Denmark topped the Energy Transition Index, with Norway and Switzerland rounding out the top five. Austria, Latvia, and the Netherlands also performed well, especially in equity and clean energy investments. China achieved a record 12th position due to its innovation and clean energy efforts, while Brazil ranked 15th in Latin America with increased energy diversification and lower prices.
The UK and US ranked 16th and 17th, respectively, with the US leading in energy security thanks to its diverse energy system and innovation. Roberto Bocca from the World Economic Forum emphasized that energy systems are evolving at different rates.
The report calls for flexible policies to attract sustained investments, promote collaboration, upgrade infrastructure, develop the workforce, expand clean technology deployment, and increase financial support for developing economies. Emerging Europe showed the most substantial improvements, led by Latvia and followed by Bosnia and Herzegovina, while China and Malaysia led in Emerging Asia. Sub-Saharan Africa also made strides, with Nigeria rising from 109th in 2016 to 61st in 2025, showcasing the effects of targeted reforms and localized transitioning strategies.
The ‘Fostering Effective Energy Transition 2025’ report assesses the energy systems of 118 countries based on security, sustainability, and equity. It also examines their readiness regarding political commitment, financing, innovation, infrastructure, education, and human capital.
Notably, 65% of countries improved their Energy Transition Index scores, with 28% advancing across all key areas in 2025. Advanced economies are grappling with issues such as grid congestion and high energy prices, while regions like Emerging Europe and Emerging Asia are making headway due to specific policy reforms and increased clean energy investments.
The 2025 Energy Transition Index recorded a 1.1% year-on-year improvement, the fastest growth since before the COVID-19 pandemic. Equity saw the most significant progress due to stable energy prices and subsidy cuts, while sustainability improved due to a rise in renewable energy usage and energy efficiency.
Energy security experienced minimal change, affected by inflexible power systems, dependency on imports, and limited diversification. Despite a $2 trillion clean energy investment last year, emissions hit a record 37.8 billion tonnes, with energy demand growing by 2.2%, influenced by AI, data centers, cooling, and electrification.
Sweden, Finland, and Denmark topped the Energy Transition Index, with Norway and Switzerland rounding out the top five. Austria, Latvia, and the Netherlands also performed well, especially in equity and clean energy investments. China achieved a record 12th position due to its innovation and clean energy efforts, while Brazil ranked 15th in Latin America with increased energy diversification and lower prices.
The UK and US ranked 16th and 17th, respectively, with the US leading in energy security thanks to its diverse energy system and innovation. Roberto Bocca from the World Economic Forum emphasized that energy systems are evolving at different rates.
The report calls for flexible policies to attract sustained investments, promote collaboration, upgrade infrastructure, develop the workforce, expand clean technology deployment, and increase financial support for developing economies. Emerging Europe showed the most substantial improvements, led by Latvia and followed by Bosnia and Herzegovina, while China and Malaysia led in Emerging Asia. Sub-Saharan Africa also made strides, with Nigeria rising from 109th in 2016 to 61st in 2025, showcasing the effects of targeted reforms and localized transitioning strategies.