The World Economic Forum’s 2025 report, developed with Accenture, assesses global progress in building secure, equitable, and sustainable energy systems through the Energy Transition Index (ETI), covering 118 countries. It arrives amid record-high energy demand, climate pressures, and geopolitical fragmentation.
Key Global Findings
Energy Demand & Emissions: In 2024, global energy demand grew 2.2%, driven by electrification, AI data centres, and extreme heat. CO₂ emissions hit an all-time high of 37.8 billion tonnes.
Investment Trends: Clean energy investment surpassed $2 trillion in 2024, double 2020 levels, but far below the $5.6 trillion annually needed through 2030. Growth slowed to 11%, down from 24–29% in previous years.
ETI Performance: Global ETI scores rose 1.1% year-on-year, the fastest increase in a decade. 65% of countries improved, but only 28% advanced simultaneously in security, equity, and sustainability.
Regional & Country Insights
Top Performers: Sweden, Finland, and Denmark retained the top three positions, supported by diversified clean energy mixes, resilient infrastructure, and long-term policy stability.
Major Economies:
China ranked 12th, with record clean energy investment and strong innovation capacity.
US ranked 17th, leading in energy security and improving sustainability.
India advanced in energy efficiency and investment capacity.
Regional Trends:
Emerging Europe led in infrastructure and education gains.
Emerging Asia advanced through investment (+18.7%) and regulation.
Sub-Saharan Africa showed progress in regulation and policy, though financing gaps persist.
Dimension Trends
Equity rebounded, nearing pre-COVID levels, supported by lower energy prices and subsidy reforms.
Sustainability improved through greater renewable adoption and reduced energy intensity.
Security stagnated due to import dependence, grid inflexibility, and supply risks.
Transition Readiness slowed to 0.8% growth, below its 10-year average, reflecting stalled progress in regulation, innovation, and finance.
Structural Challenges
Persistent financing gaps, especially in emerging markets (capital costs up to 7x higher than in advanced economies).
Grid capacity, permitting delays, and workforce shortages emerged as bottlenecks.
Geopolitical tensions and trade barriers risk undermining supply chains and clean technology deployment.
Strategic Priorities
The report identifies five urgent priorities to sustain momentum:
Establish stable, adaptive policy frameworks to attract long-term capital.
Modernize infrastructure, especially grids, storage, and interconnectors.
Invest in human capital to expand innovation and delivery capacity.
Accelerate commercialization of clean technologies in hard-to-abate sectors.
Channel more investment into developing economies to align capital flows with demand growth.
The 2025 ETI shows renewed momentum, but progress is uneven and fragile. To build durable energy systems, countries must balance climate ambition with resilience, competitiveness, and inclusivity. Success will hinge on aligning ambition with delivery capacity—turning commitments into tangible projects backed by stable regulation, capital, and local adaptability
