WEF: Energy Transition Momentum Slowing Amid Global Volatility
European Nations Dominate ETI 2024 Rankings
The World Economic Forum (WEF) has released its annual report on global energy transitions, revealing a nuanced picture of progress and challenges amidst heightened global uncertainty.
The report titled ‘Fostering Effective Energy Transition 2024’ underscores that while the world has made strides towards a more equitable, secure, and sustainable energy system, momentum has slowed significantly in recent years.
According to the report, 107 out of 120 countries assessed have improved their energy transition efforts over the past decade. However, the overall pace of advancement has decelerated, influenced by economic volatility, geopolitical tensions, and rapid technological changes. These factors have complicated efforts to balance global energy security, equity, and sustainability.
The Energy Transition Index (ETI) 2024 rankings are primarily dominated by European nations, with Sweden leading the pack and Denmark, Finland, Switzerland, and France following closely behind. These countries have set a high standard for the global energy transition, demonstrating solid political commitment, robust research and development investments, and aggressive adoption of clean energy technologies.
France Rises
France, in particular, has ascended into the top five due to recent policy measures to enhance energy efficiency.
Despite these advancements, disparities between advanced economies and developing nations regarding investment levels and regulatory frameworks persist. The gap, however, is narrowing, with developing countries increasingly taking significant strides forward, particularly in sub-Saharan Africa, where energy transition performance has shown notable growth.
“This year’s report underscores the urgency of equitable energy transition efforts across all economies,” said Roberto Bocca, Head of the Centre for Energy and Materials at the World Economic Forum.
“Transforming our energy systems is crucial. We must prioritise reducing emissions, scaling up clean energy solutions, and improving energy efficiency to ensure sustainable development globally.”
Countries like Brazil and China have made substantial progress, driven by long-term commitments to expanding renewable energy capacities and enhancing grid reliability. Brazil’s emphasis on hydropower and biofuels, coupled with recent advancements in solar energy, has attracted significant investments.
Meanwhile, China has bolstered its renewable energy capabilities and manufacturing capacities in clean technologies, solidifying its position as a global leader in energy transition innovation.
However, despite these positive developments, the report highlights significant challenges. Eighty-three per cent of countries have regressed in at least one aspect of the energy transition compared to last year, reflecting sustainability, equity, or security setbacks.
Moreover, global efforts remain insufficient to meet ambitious climate targets outlined in the Paris Agreement, further complicated by escalating energy prices and geopolitical tensions.
“Innovation remains pivotal to overcoming these challenges,” noted Espen Mehlum, Head of Energy Transition Intelligence and Regional Acceleration at the World Economic Forum.
“Technological advancements, particularly in digital innovations like generative AI, promise to revolutionise energy systems by enhancing productivity and efficiency.”
Looking ahead, the report advocates for tailored policy interventions that consider each country’s unique socio-economic context and energy resources. It calls for increased international cooperation and financial support to ensure a just and inclusive energy transition globally.
Featured image: While the world has made strides towards a more equitable, secure, and sustainable energy system, momentum has slowed significantly in recent years. Credit: Matthew Henry
Last Updated on 6 months by Arnold Pinto
