Fostering Effective Energy Transition 2025

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Decade lookback for the energy transition TABLE 12 Source: World Economic Forum. Cumulatively, these trends show that the transformation now under way (further explored in section 4.2) is built on long-term momentum – yet, its future will be shaped by structural disparities, national capacity to act and cooperation across national borders. While sustainability has gained prominence globally, many emerging economies have long prioritized energy access, affordability and industrial growth – often constrained by fiscal and infrastructure limitations. Today’s regulatory, infrastructure and equity gaps are not new, but are now intersecting with climate imperatives, reshaping the global energy agenda. Navigating diverse starting points will be key to building an inclusive, context-driven transition. Index componentScore change, 2016-2025 Trend takeaways Overall ETI +6.2%A decade of ETI data reveals that overall performance gains were modest and largely driven by improvements in transition readiness, while core system outcomes were steady but uneven. System performance +3.3%Incremental improvements reflect steady but uneven progress across core dimensions of the energy system. Security +3.4%This growth was driven by improved energy mix diversification, investment in domestic infrastructure and efforts to reduce import dependence. Equity +1.5%Energy equity and access gaps – particularly in lower-income regions – underscore the risk of leaving some behind in the transition. Sustainability +5.3%This dimension experienced the strongest gains of any system dimension, driven by rising clean energy use, improved efficiency and lower emissions intensity – but still fell short of the pace needed to achieve net zero. Transition readiness +12.5%This dimension experienced long-term gains in policy frameworks, institutional capacity and infrastructure, that laid the groundwork for resilience and long-term planning. Regulation and political commitment+19.6%This growth signals growing political will and institutional engagement in the energy transition, though coherence and stability remain critical. Infrastructure +15.4%This dimension saw steady progress driven by renewable capacity expansion, yet digital infrastructure lagged, signalling slow progress on smart grids and connectivity updates. Education and human capital+6.8%Gains were driven by clean energy job growth, but broader talent competitiveness was found to be down – revealing gaps in transition-ready skills. Innovation +3.4%This flat trajectory reflects weak momentum in creating breakthrough solutions, with modest R&D and business gains offset by declining diffusion of clean technologies. Finance and investment+10.3%Improvements reflect increased renewable energy investment levels, yet challenges persist in domestic credit access and investor confidence, particularly in emerging markets. 38 Fostering Effective Energy Transition 2025
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