Regional strengths and challenges in the energy transition TABLE 4 Source: World Economic Forum (2025). Accelerating an Equitable Transition: A Data-Driven Approach. Regional dynamics – from fossil-fuel-rich economies in the Middle East to rapidly growing markets in Asia – underscore the diversity of transition pathways, challenges and enablers shaping the global energy landscape. These country-level and regional spotlights illustrate where momentum is accelerating, where persistent barriers remain and how both emerging and resource-rich economies are redefining their roles within the evolving energy system. Collectively, these insights reinforce a critical shift: the energy transition will not follow a single, uniform path but will instead require context-specific strategies tailored to local strengths and limitations. Fostering Effective Energy Transition 2025 20Regions Strengths Challenges Advanced economies –Strong political commitment and institutional capacity –Access to capital and advanced innovation ecosystems –Political uncertainty and cost-of-living pressures –Ageing infrastructure and electricity grid stability Emerging Asia –Rapid growth in renewable energy investment –Strong industrial policy momentum –Energy supply insecurity, especially in South-East Asia –Continued reliance on coal markets Emerging Europe –Expanding renewables base, clean technology supply chain potential –Conducive policies, EU integration and regional cooperation –Continued reliance on coal in large markets –Limited financing capacities in select markets and skills gaps due to legacy brown industries Latin America and the Caribbean –High renewables share, strong hydro and solar potential –Industrializing economies with leapfrogging potential and young, well-educated populations –Regulatory and institutional instability and low inclusion –Financing and technology access constraints (limited innovation capacity) Middle East, North Africa and Pakistan –Abundant renewables potential, including hydrogen and infrastructure –High fiscal capacities, strong industrial base and clean-energy-driven diversification –Limited grid flexibility and water-energy nexus risks –Fossil fuel legacy/dependence, subsidy reliance and labour market gaps Sub-Saharan Africa –Abundant, well-distributed potential for renewables –Opportunities for leapfrogging fossil-fuel-based growth with distributed energy –Low energy and clean cooking access/electrification rates –Underinvestment, weak institutions and limited quality education