3. Energy Transition Index (ETI)
The ETI evaluates 114 countries that represent more than 98% of global GDP and global energy system carbon emissions, approximately 90% of the global population, and about 60% of people without access to electricity.
The ETI provides both a high-level assessment and comparison of countries globally and individually against a defined target benchmark.
Box 4: Introduction to the Energy Transition Index
Since 2013, the Energy Architecture Performance Index (EAPI) has helped decision-makers better understand energy systems and assess the current energy architecture performance of individual nations. In an environment of rapid transformation, it has become increasingly important for decision-makers to also understand the drivers and bottlenecks for future improvements in their energy systems. The newly developed ETI introduces the concept of transition readiness. In addition to measuring countries’ energy system performance, it evaluates the extent to which countries have created the conditions for business and society to seize the opportunities that energy transition offers.
The ETI is a composite index that focuses on tracking specific indicators to measure the energy system performance and transition readiness of 114 countries. At its core are two equally weighted sub-indexes: the system performance score and the transition readiness score (see the Addendum on the methodology in the appendix for further details).
1. System performance score
The system performance score is calculated with 17 indicators, which are defined using the three imperatives of the energy system (energy triangle): economic development and growth, environmental sustainability, and security and access.
2. Transition readiness score
The transition readiness score is calculated using 23 indicators, which define six enabling dimensions: capital and investment, regulation and political commitment, institutions and governance, infrastructure and innovative business environment, human capital and consumer participation, and energy system structure.
Scores (on a scale of 0-100%; with 100% being the target value) and associated rankings are calculated for each of the indicators, creating the system performance and transition readiness scores, using various well-established statistical methods. These numbers are then aggregated to calculate a score and ranking for each of the three dimensions of the triangle (system performance) and the six enabling elements (transition readiness). The aggregation of system performance and transition readiness results in the overall ETI score and ranking.