Energy Transition Slows Down

The energy transition to green sources has been slow, and the reason for this may also be due to international uncertainty, according to the World Economic Forum’s report “Fostering Effective Energy Transition 2024.”

“Global average Energy Transition Index (ETI) scores reached their highest levels, with 107 out of 120 countries making progress over the past decade,” the study’s abstract says. “However, the global landscape is marked by economic volatility, heightened geopolitical tensions, and technological shifts.”

Progress in the approach to environmental sustainability is seen through improved energy efficiency and an increased share of clean energy, despite a 1.1% increase in energy emissions in 2023.

“Transition readiness has progressed significantly, driven by regulations and political commitment, education and human capital, and infrastructure,” the study explains. “Countries like China and India are leading in developing new energy solutions and technologies.”

Developed economies, including China and Brazil, are achieving best results along with several developing economies. The ranking is led by Sweden, Denmark, Finland, and Switzerland, followed by France and Norway, with the entire top ten consisting of European countries.

The 20 most virtuous countries include six members of the G20: France, Germany, Brazil, China, Great Britain, and the USA, although London, ranked 13th, is taking steps backwards. Italy is only in 41st place, mainly because of its dependence on gas.

The giant successes are with China, which in 2023 commissioned a number of PV systems equal to what the rest of the world installed in 2022, which also means +66% growth in wind power. Brazil’s long-term plan for hydropower and biofuels is also among the positive examples, while Estonia, Ethiopia, and Lebanon are the countries that have improved the fastest in the last five years.

Full report “Fostering Effective Energy Transition 2024”