Recently, the World Economic Forum (WEF) positioned India at the 67th rank worldwide on its Energy Transition Index (ETI). The ETI is a benchmarking tool that measures 120 economies based on their current energy system’s performance across different aspects like economic development and growth, environmental sustainability, and energy security and access. It also evaluates their preparedness for transitioning to a more secure, sustainable, affordable, and inclusive energy system.
India’s standout moment came as it was the only major economy where energy transition momentum was accelerating across all areas, with Singapore being the only other major economy showing similar momentum by advancing sustainability, energy security, and equity in a balanced manner.
Key Highlights of Energy Transition Index Rankings
Top performers in this index were Sweden, Denmark, Norway, Finland, and Switzerland, who claimed the top five spots among the 120 nations analyzed. France, at number seven, emerged as the only G20 country in the top ten list, closely trailed by Germany, the U.S., and the U.K., ranking 11th, 12th, and 13th respectively.
The global average ETI scores have grown by 10% since 2014, but growth has been marginal in the last three years. Notably, only 41 countries have made consistent progress over the past decade.
Progress Drivers and Concerns for India’s Energy Transition
India’s improved ETI ranking is attributed to universal electricity access, adoption of clean cooking options, and successful deployment of renewable energy. Moreover, a low reliance on natural gas and an effective utilization of existing capacities helped India withstand the recent energy crisis.
However, the path towards energy transition isn’t without challenges. Rising import dependence amidst global energy market volatilities and a predominantly carbon-intensive energy mix remain major concerns. The challenges further extend to balancing robust economic growth while creating quality jobs for the rapidly expanding working-age population.
Recommendations for India’s Energy Transition
To achieve long-term energy transition objectives, consistent momentum, effective policy management, and fostering partnerships are vital. This involves promoting investments in clean energy, driving innovation, and focusing on energy efficiency while ensuring inclusivity. Building a skilled workforce, encouraging public-private collaboration, and investing in low-carbon technology research and development are necessary actions for a successful energy transition in India.
About World Economic Forum
The WEF, established in 1971, is a Swiss non-profit foundation headquartered in Geneva, Switzerland. It is recognized by Swiss authorities as an international institution for public-private cooperation. The organization is dedicated to improving the state of the world by engaging business, political, academic, and other societal leaders to shape global, regional, and industry agendas. The founder and executive chairman of the WEF is Klaus Schwab.
In addition to the ETI, WEF also publishes several significant reports such as the Global Competitiveness Report, Global IT Report, Global Gender Gap Report, Global Risk Report, and the Global Travel and Tourism Report. The Global IT Report is published in collaboration with INSEAD and Cornell University.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
In the 2017 UPSC exam, a question was asked regarding which organization publishes the ‘Global Gender Gap Index’ ranking. The answer is the World Economic Forum. In 2009, a question was posed about the founder of the World Economic Forum, which is Klaus Schwab. Additionally, in 2019, it was asked which organization publishes the Global Competitiveness Report, to which the answer is also the World Economic Forum.
