Fostering Effective Energy Transition 2025

Page 27 of 71 · WEF_Fostering_Effective_Energy_Transition_2025.pdf

Regional divergence Energy equity continued to evolve unevenly across regions, shaped by varying levels of access, pricing structures, subsidy policies and external cost pressures. While most regions achieved high levels of urban electrification over the past decade, rural access and equity remained major differentiators. In 2025, some regions saw improvements in equity linked to reform-driven subsidy reductions while others benefited from improved domestic supply and investment (Table 7). Equity dimension regional overview, 2016-2025 TABLE 7 Source: World Economic Forum.Geographic group2025 average scoreOne- year trend10-year trend Key takeaways Opportunities Challenges Advanced economies71.8 1.6% -3.2%Advanced economies saw a modest rebound in equity in 2025, reflecting recent price stabilization following a period of high volatility. However, structural challenges such as persistent fossil fuel subsidies45 and import dependence continue to weigh on long-term transition progress. –Near-universal energy access –Advantage in low- carbon technology production and agility –High fossil fuel subsidies44 –Fuel import dependency Emerging Asia63.9 2.6% 4.7%Emerging Asia improved equity through targeted price relief and improved access for rural communities. –Increasing access to electricity and clean fuels with growth in clean energy value chains –Improving potential for low-carbon technology production –High subsidies and fossil price risks –Equity gaps in rural regions Emerging Europe69.8 5.6% 0.7%Emerging Europe posted the strongest one-year gain, driven by lower electricity and gas prices. –Near-universal access to electricity –Low volatility in energy price46 –Industry-induced price pressure –Higher fuel import dependence among many countries Latin America and the Caribbean 64.9 0.4% 2.8%Latin America and the Caribbean sustained steady progress through rural electrification and stable electricity industry prices over the years, however, recent gains were minimal due to gas price volatility. –Near-universal urban access to electricity and progressing clean cooking access –Declining fuel imports and energy subsidies –Relatively limited advantage in low- carbon technology production –Inequity in rural access Middle East, North Africa and Pakistan73.5 2.6% 2.5%Middle East, North Africa and Pakistan led the equity dimension globally due to lower energy prices, high access to electricity, generally low import dependence and recent reductions in energy subsidies. –World leader in low energy prices –Low fuel import dependence among major energy producers –High subsidy levels despite recent reform –Limited clean technology capacity Sub- Saharan Africa50.0 0.5% 8.6%Sub-Saharan Africa remained the most equity-constrained region, with limited rural access and clean cooking coverage, though the region exhibited modest progress. –Expansion of access- oriented programmes and off-grid solutions –Improving clean cooking fuel access –Persistent rural-urban disparities in energy access –Minimal clean tech exports Fostering Effective Energy Transition 2025 27
Ask AI what this page says about a topic: