This report summarizes findings from the second edition of the Energy Transition Index (ETI, or the Index), part of the World Economic Forum Fostering Effective Energy Transition initiative. The ETI builds on the previous Energy Architecture Performance Index series (2013‑2017) to establish a fact base rich with insights that enables decision‑makers to benchmark against global peers, learn from best practices and prioritize necessary actions to support and encourage an effective energy transition in their countries.
The Index benchmarks countries on the performance of their energy system and their readiness for energy transition. It offers a framework for countries to design long‑term energy transition roadmaps by considering current energy system performance and highlighting the necessary enablers that improve countries’ readiness for energy transition.
Over the past year, developments across the three pillars of the energy triangle – economic development and growth, energy security and access, and environmental sustainability – have attested to the complexity of the energy system and highlighted the need to accelerate energy transition.
Ambition of the Energy Transition Index
The implications of the ongoing energy transition will reverberate across the established socio‑economic, technological and geopolitical order. Although unprecedented in its scale and impact, the energy transition also offers an opportunity to shape the future of the energy system and ensure its sustainability, security, affordability and inclusiveness in the long term. Progress towards these goals requires supporting policies, technological innovation, large volumes of investment and a platform that encourages multistakeholder collaboration. The challenges faced by the energy system cannot be addressed by a single entity. Rather, a common understanding is required among all stakeholders on the long‑term vision for energy transition and the near‑term priorities.
The multidimensional nature of the ETI reflects the complexity of the energy system and the importance of achieving simultaneous progress on macroeconomic and social variables as well as on the regulatory environment impacting energy transition. However, energy systems across countries are unique to local circumstances, economic structure and socio‑economic priorities, which highlight the multiple pathways to pursue an effective energy transition. Through these efforts, the World Economic Forum encourages the sharing of best practices and the use of its platform for effective public‑private collaboration to facilitate energy transition planning in countries around the world.
This report examines progress and challenges on energy transition across countries grouped together based on shared characteristics that determine common objectives. Furthermore, it includes a section on the complexity of the energy transition, in an effort to highlight the true scale of the challenge.
Head of Future of Energy and Materials, Member of the Executive Committee,
World Economic Forum