Fostering Effective Energy Transition 2025

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Top five largest economies in the ETI 2025 TABLE 3 Note: EU score is based on the simple average of its 27 member states. Country selection is based on GDP in purchasing power parity (PPP). Source: World Economic Forum. Average ETI scores varied significantly across regions, reflecting differences in energy demand profiles, institutional capacity and economic structure.Regional trendsOver the past decade, all five of these economies made progress in the energy transition (including above-average gains in sustainability). In particular, the US, EU and Japan made consistent gains in areas such as energy efficiency and emission intensity, and benefit from more mature regulatory regimes. Yet, the emerging markets of China and India experienced the greatest overall improvement, especially in increasing access to energy and strengthening transition readiness. While all of these economies will play a critical role in the future of the energy transition, they each have differing strengths and challenges (Table 3) that require varied approaches. Economy2025 ETI score Structural strengths Structural challenges 2025 progress highlights China 67.5China showed high levels of readiness for the energy transition, backed by leading clean energy and industrial infrastructure, human capital, innovation and investment. The economy accounted for nearly 40% of the world’s clean energy investment in 2024.Despite the rapid expansion of renewable energy and clean energy technology diffusion, energy and emission intensity remained relatively high. Meanwhile, energy supply flexibility and diversity could be further strengthened to augment energy security.China showed strong progress due to expanding renewable capacity and clean-energy technology production and diffusion. For the first time, the country’s CO2 emissions declined 1.6% y-o-y in the first quarter of 2025,36 despite increasing energy demand. US 66.8The US is a world leader in energy security and equity thanks to an affordable, abundant and diverse energy supply, and relatively reliable grid infrastructure. The US’ transition is also supported by favourable conditions for innovation, a skilled labour force, and deep and robust financial markets. While the country has made significant progress, expanding clean energy use and reducing energy and emission intensity over the past decade, its energy efficiency and emission levels lag behind other major advanced economies. The US showed continued gains in energy efficiency and an increasing share of clean energy, backed by expanding renewable energy capacity and low-carbon employment. EU 65.5Over 40% of member states scored in the top 20 of the 2025 ETI. The EU’s lead in energy sustainability expanded over the past decade, with member states on average having lower energy intensity and CH4 production, and greater clean energy shares than other major economies. The region’s energy transition is supported by strong regulatory architecture, infrastructure, human and technological capital and financial markets. Differences in economic development and transition readiness can lead to uneven transition progress among member countries. Moreover, despite recently easing prices and import diversity, energy affordability and import dependence remain critical equity and security challenges. Easing energy prices improved affordability, while energy sustainability was supported by increased renewables capacity and the diffusion of renewable energy technology. Japan 64.9Favourable regulatory, innovation and financial ecosystems bolster readiness and clean energy technology diffusion and production, while energy security and equity are backed by reliable grid infrastructure and diverse electricity supply. Over the past decade, Japan has experienced increased electricity and gas prices, and reduced energy supply flexibility. The country needs to continue to improve energy sustainability and expand the use of clean energy. It will be crucial to take action to reinvigorate the deployment and development of related technologies. Recent declines in electricity and gas prices have eased affordability challenges, while increased use of clean energy and regulatory improvements have coincided with declining energy and emissions intensity. India 55.3Over the past decade, India made significant strides in increasing equity through greater access to energy and clean fuels, while also improving energy regulations and investment in renewable and other clean-energy technologies.Continued improvement in grid reliability, energy access for rural areas and further reducing dependence on imported energy may enable further progress in energy security and equity. Further investment in infrastructure, renewables, labour force development and financing conditions could help boost the country’s energy transition. India made progress in lowering energy intensity and CH4 emissions, creating more favourable energy regulations and increasing clean energy investments. Fostering Effective Energy Transition 2025 18
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