The World Economic Forum (WEF) has recently published its annual Energy Transition Index rankings. These rankings use a detailed examination of 115 economies to assess their energy systems’ performance and transition readiness. Several factors are considered in this evaluation, such as economic development and growth, environmental sustainability, and energy access and security indicators. Below, we break down the findings of the report, including data analysis, performance review, India’s ranking, the impact of COVID-19, and some policy suggestions.
Data Analysis: Rankings and Noteworthy Highlights
This year, Sweden took the top spot in the index for the third consecutive year, with Switzerland and Finland following closely in second and third place. The UK and France were the only G20 countries to break into the top ten. Out of the 115 countries, only 11 showed consistent improvements in their Energy Transition Index (ETI) scores since 2015. Argentina, China, India, and Italy were among those displaying steady annual progress. However, scores for countries like the US, Canada, Brazil, and Australia remained unchanged or even dipped slightly.
Performance Analysis: Environmental Sustainability Improvements
The report showed that 75% of the countries made strides towards improving their environmental sustainability in 2020. This has largely been achieved through multi-pronged efforts such as carbon pricing, early retirement of coal plants, and restructuring electricity markets to better integrate renewable energy sources. The study showed that out of the 115 economies, 94 have made progress towards transitioning to clean energy since 2015.
India’s Rising Position
India improved its position by two spots and now ranks 74th on the index. This improvement was due to enhancements in all three dimensions of the energy triangle: economic development and growth, energy access and security, and environmental sustainability. India’s gains can be mainly attributed to the government’s push for a renewable energy expansion program, which aims to add 275 GW of capacity by 2027.
The Negative Impact of Covid-19
The progress made in transitioning to clean energy is threatened by the COVID-19 pandemic. This is evident from the unprecedented falls in demand, price volatility, and the pressing need to quickly alleviate socioeconomic costs.
Potential Measures for Energy Transition
The report suggests that to counter the potential setbacks posed by the pandemic, we need more robust and resilient national, regional, and global policies, roadmaps, and governance frameworks for energy transition. It also recommends using the pandemic as an opportunity for globally coordinated intervention in energy markets to support a recovery that accelerates energy transition once the crisis has passed.
About World Economic Forum (WEF)
The WEF is an international nonprofit foundation based in Geneva, Switzerland, established in 1971. The organization’s mission involves engaging leaders from business, politics, academia, and other sectors of society to shape global, regional, and industry agendas. The WEF publishes several significant reports throughout the year, such as the Global Competitiveness Report, Global IT Report, Global Gender Gap Report, Global Risk Report, and Global Travel and Tourism Report.
