The World Economic Forum recently released the 2019 edition of its report, “Fostering Effective Energy Transition”. The report features the comprehensive Energy Transition Index (ETI), which provides a comparative analysis of the energy sectors across 115 countries. It also evaluates their degree of preparedness for transitioning to more sustainable and efficient energy systems.
The State of Global Energy Systems
Today’s global energy systems are generally less affordable and environmentally sustainable than they were half a decade ago. However, accessibility to energy has seen an improvement; less than 1 billion individuals remain without access to electricity today, compared to the statistics from five years ago. Between 2014 and 2016, an average of 135 million people per annum gained access to electricity.
The principal challenge in future-proofing global energy demands lies in the readiness—or lack thereof—of the world’s largest carbon emissions contributors. Emissions ballooned once again in 2017, following a three-year period of stability. Over half of all countries saw an increase in CO2 emissions from fuel combustion, driven mainly by rising demand in residential and transportation sectors.
The Dilemma of Coal Consumption and Fossil Fuels
Coal consumption, which had been on a downward trend for three years, witnessed growth again in 2018. This resurgence, along with rising commodity prices and insufficient progress in energy intensity improvements, has contributed to a slowdown in energy transition. Despite advancements in renewable energy technologies, the share of fossil fuels in total primary energy supply remains unchanged at 81 percent over the past three decades.
Environmental Sustainability in Energy Production
The report suggests that environmental sustainability in energy production has only marginally improved, pointing towards a significant lack of substantive progress in this realm. Despite being one of the countries contributing to high pollution levels and high CO2 emission intensity, India has shown promising progress in increasing energy accessibility.
India’s Energy Scenario
India has made noteworthy strides towards achieving universal electrification, thanks to strong political commitment, a stable policy environment, grid expansion and the adoption of decentralized generation sources.
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| Country | CO2 Emission Intensity High | Improvement In Energy Access |
|---|---|---|
| India | Yes | Significant |
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The Energy Transition Index (ETI)
The ETI ranks economies based on their ability to balance energy security and access with environmental sustainability and affordability. It covers 115 economies across 40 indicators. Sitting atop the index is Sweden, followed by Switzerland and Norway. The United Kingdom ranks seventh among the major economies while Singapore, Germany, Japan, and the US take the thirteenth, seventeenth, eighteenth, and twenty-seventh spots, respectively.
India climbed two positions from the previous year to secure the 76th rank, placing it above China which stands at the 82nd position. This makes India the second best among the BRICS emerging economies, following Brazil, which ranks 46th globally. Impressively, India is the only country among these five nations to improve its ranking since the previous year.
