Fostering Effective Energy Transition 2025

Global average ETI and sub-index growth rates, 2016-2025 FIGURE 3 ETI overall System performance Transition readiness2016 2017 2018 2019 2020 2021 2022 2024 20250.5%1.0%1.5%2.0% 0.0%2.5% -1.0%-0.5% -1.5%2023Growth rate Source: World Economic Forum. Momentum is real – but exposed to disruption. While 2025 marked a strong rebound in ETI scores, underlying vulnerabilities persisted. The full economic and geopolitical impact of 2024 has yet to materialize – and may trigger second- order effects that stall or reverse progress. Rising tariffs, volatile capital markets and mounting fiscal pressures are already delaying infrastructure investment and increasing the cost of long-term financing. Public funds may be redirected to near- term economic stabilization, defence or social priorities – potentially crowding out investment in clean energy, innovation and grid resilience. These shifts risk widening transition gaps and weakening the durability of current gains. This uncertainty is underscored by the developments that have shaped the energy landscape (Box 3). Fostering Effective Energy Transition 2025 12