Regional divergence Transition readiness remained the clearest differentiator of long-term energy transition potential, shaped by each region’s institutional capacity, infrastructure, human capital, innovation ecosystem and investment attractiveness. While emerging Europe, emerging Asia, and the Middle East, North Africa and Pakistan regions improved over the past decade, the scale and speed of readiness gains varied considerably. In 2025, regulatory progress and clean technology investment were key drivers of improvement in several regions, while others faced headwinds in infrastructure delivery and talent retention (Table 11). –Advanced economies saw a slight decline in transition readiness in 2025 (-0.4% y-o-y), driven by a drop in finance and investment conditions (-4.1% y-o-y) and continued stagnation in above-average innovation (despite gains in infrastructure and education, and sustained high regulatory performance). –Emerging Asia recorded solid progress in 2025 (+5.0% y-o-y), driven by improvements in regulation and infrastructure, and, above all, a sharp rise in renewable energy investment. –Emerging Europe saw moderate progress in 2025 (+2.1% y-o-y), driven by gains in infrastructure and workforce, though regulation and innovation declined and structural gaps in investments persisted. –Latin America and the Caribbean saw stagnation in transition readiness in 2025 (0% y-o-y), with modest improvements in infrastructure, innovation, human capital and regulation offset by declines in financial investments. –Middle East, North Africa and Pakistan made modest progress in 2025 (+0.6% y-o-y), with improvements in regulation, education and human capital and financial investments offset by declines in innovation and infrastructure, highlighting persistent structural barriers. –Sub-Saharan Africa saw no net gain in transition readiness in 2025 (0% y-o-y). Improvements in regulation and innovation were offset by setbacks in infrastructure and finance, pointing to an uneven and fragile readiness landscape. Transition readiness remained the clearest differentiator of long-term energy transition potential. Fostering Effective Energy Transition 2025 34