Fostering Effective Energy Transition 2025

Page 11 of 71 · WEF_Fostering_Effective_Energy_Transition_2025.pdf

Transition scores – key takeaways BOX 22.1 Transition scores After several years of slow momentum, overall ETI scores in 2025 improved – +1.1% year-on-year (y-o-y) – by more than double the average rate of the past three years (+0.4%), reflecting the accelerating recovery in energy transition progress.Energy system performance improved. After recent declines, average system performance rose by 1.2% y-o-y in 2025 – returning to 2022 level.There was slower improvement in the enablers for the transition. In 2025, transition readiness rose by just 0.8% y-o-y – less than its 10-year average of 1.2% and notably slower than system performance, which outpaced readiness growth for the first time in recent years.Momentum is real – but its resilience remains uncertain. The 2025 rebound is encouraging, but fallout from recent geopolitical and economic shocks may still lie ahead, raising questions about the durability of recent gains and the strength of global energy systems. Global average ETI and sub-index scores, 2016-2025 FIGURE 2 4550556070 2016 2017 2018 2019 2020 2021 2022 2023 2024 20254065 ETI overall System performance Transition readinessScore (0-100) Source: World Economic Forum. Energy system performance improved. After recent declines, average system performance scores rose by 1.2% y-o-y in 2025 – its fastest recovery in a decade – returning to 2022 levels. Much of this recovery was a result of greater equity dimension scores (+2.2% y-o-y), reflecting easing energy prices and structural subsidy reforms in many countries. Average sustainability scores also improved (+1.2% y-o-y), highlighting lower energy and emissions intensities and clean energy’s increased share of energy consumption. Nevertheless, global energy prices remained elevated. Meanwhile, system security average scores remained below recent levels, marginally improving in 2025 (+0.4% y-o-y), indicating persistent vulnerabilities in energy supply flexibility and diversity.Progress on transition readiness slowed. In 2025, transition readiness rose by just 0.8% y-o-y, falling below its 10-year average of 1.2% and marking the first time since 2017 that system performance (+1.2%) outpaced preparedness. While past gains in regulation, infrastructure, innovation, education and investment have underpinned long-term progress, recent momentum has weakened. Regulatory frameworks, innovation ecosystems and investment capacity showed signs of stagnation, and, in some regions, a diminished rule of law further undermined policy effectiveness. This is relevant as improvements in readiness typically precede gains in performance. If readiness continues to lag, future progress in energy security, equity and sustainability could be at risk. Fostering Effective Energy Transition 2025 11
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