Looking ahead: recalibrating readiness in a fragmented world Due to trade tariffs and broader economic and geopolitical uncertainty, 2025 may mark a turning point for transition readiness. Clean energy finance may face diversion risks as governments shift priorities towards domestic industrial protection and inflation control. The looming threat of slower economic growth or recession in some countries could further tighten public budgets and private capital flows, delaying investments in energy innovation and clean energy growth. Key vulnerabilities include: –Financial investments: Higher trade barriers may raise costs for imported components, tightening margins and deterring investment in clean energy infrastructure and supply chains. –Education and jobs: Economic slowdowns may stall re-skilling efforts and slow momentum in clean job creation – especially in emerging markets. –Innovation: Budget reallocation towards short- term economic relief may undercut public R&D and crowd out long-term clean technology innovation. –Digital infrastructure: Limited data systems and digital capabilities can hinder planning, grid optimization and transparency. Yet, this phase also offers a chance for geopolitical and geoeconomic realignment. Countries can harness this moment to: –Localize key segments of clean technology value chains. –Strengthen industrial policy frameworks to align decarbonization with competitiveness. –Diversify trade partnerships and deepen bilateral, regional and South-South cooperation. How countries respond now will shape their long- term competitiveness, supply chain security and ability to deliver on energy transition goals. System performance and transition readiness are not sequential steps but parallel imperatives: one measures how effectively energy systems deliver today, while the other reflects a country’s ability to adapt, invest and scale solutions now and into the future. Both are essential to achieving an inclusive, resilient and sustainable transition.Regional transition readiness snapshot TABLE 11 Note: Colour-coding reflects each region’s relative position within quartile groups, calculated independently for each transition readiness dimension. Country 2025 scores were grouped into quartiles (top 25%, 50-75 percentile, 25-50 percentile and bottom 25%), and regional averages were mapped accordingly. As each dimension is scaled separately, colours are not comparable across columns. Dark green = top quartile; light green = 50-75 percentile; orange= 25-50 percentile; red = bottom 25%. Arrow direction represents 2024-2025 change: = upward trend; = stagnant to low upward trend; = downward trend. Source: World Economic Forum.Geographic groupRegulation and political commitment InfrastructureEducation and human capital InnovationFinance and investment Score Trend Score Trend Score Trend Score Trend Score Trend Advanced economies79.9 62.9 51.2 61.6 56.6 Emerging Asia54.2 44.8 29.1 36.1 36.0 Emerging Europe59.3 54.6 45.5 36.8 50.5 Latin America and the Caribbean53.4 46.6 30.0 33.3 28.5 Middle East, North Africa and Pakistan55.9 34.6 35.6 34.5 38.6 Sub-Saharan Africa49.4 39.5 21.3 31.7 26.6 Fostering Effective Energy Transition 2025 35