2016 2022 2023 2018 2017 2020 2021 2019 20255%10% 0% -5% -10%Growth rate 2016 2017 2018 2019 2020 2021 2022 2023 2024 20253060 50 4070Score (0-100) 2024 Innovation Education and human capital Finance and investmentRegulation and political commitment Infrastructure Transition readinessGlobal average transition readiness component performance, 2016-2025 FIGURE 9 Source: World Economic Forum. Transition readiness scores in 2025 In 2025, the transition readiness dimension improved by a moderate 0.8%, which is 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. Regulation and political commitment scores saw some progress (+0.6%), supported by advances in energy efficiency and renewable energy policies. This momentum, however, was partially offset by setbacks in the effective pricing of carbon emissions – including reductions in excise taxes, carbon taxes and/or tradeable permit coverage. Sustaining long- term credibility will require stronger implementation capacity and greater cross-sectoral alignment. Infrastructure advanced steadily (+1.5%), supported by investment in renewable integration and transport infrastructure development – particularly in advanced economies and emerging Europe. Yet, rollout gaps remained in emerging economies, limiting scalability. Renewable energy was a main driver, and solar energy experienced remarkable growth, reaching over 2.2 terawatts (TW) in 2024 (up from 1.6 TW in 2023). This growth marked a record year for photovoltaic (PV) deployment.61 Wind power also saw substantial progress (with 117 GW installed in 2024), advancing into new geographies and solidifying its role as a core pillar of the global energy transition.62 Nuclear power continued its upward trajectory – global capacity reached 371.5 GW by the end of 2023, supported by new reactors in Asia.63 Hydropower reached 1,412 GW globally in 2023, but investment was found to be lagging, putting the goal of hitting net-zero targets by 2050 at risk.64 Education and human capital scores improved modestly (+2.8%) since 2024, driven by improved access to clean energy jobs. Yet, persistent skill gaps and weak talent ecosystems continue to limit broader workforce readiness and global talent competitiveness. Innovation remained flat (-0.1%), signalling stagnation in innovation ecosystems and R&D spending. Despite isolated advances in clean technology entrepreneurship, the global clean energy innovation pipeline appeared to be losing momentum. Finance and investments scores showed slow gains (+0.2%), with average renewable energy investment experiencing reduced growth after rapid recent gains. Moreover, financing conditions and access to credit in emerging economies remained constrained by risk perceptions and limited public- private mechanisms for reducing capital costs. Overall, while 2025 sustained the positive trajectory of transition readiness, unlocking further progress will require sharper focus on innovation, skills and capital enablement – especially in markets where ambition still outpaces deliverability. Education and human capital scores improved modestly (+2.8%) since 2024, driven by improved access to clean energy jobs. Fostering Effective Energy Transition 2025 33