Global Energy Transition Gains Ground, According To Energy Transition Index 2025
The World Economic Forum 2025 Energy Transition Index shows the fastest progress since pre-COVID-19, with 65% of countries improving and 28% advancing across all core dimensions – security, sustainability and equity.
Sweden, Finland, Denmark, Norway and Switzerland top the Index, driven by strong policy commitment, infrastructure and clean energy diversification.
Emerging Europe posted the biggest gains while Emerging Asia outpaced the global average.
Despite $2 trillion in clean energy investment in 2024, energy security stalled and emissions hit record highs, highlighting the need for resilient grids, digital infrastructure and targeted capital flows.
Read the new report here.
Geneva, Switzerland, 18 June 2025 – Global progress towards secure, equitable and sustainable energy is accelerating after years of sluggish gains, according to a World Economic Forum report released today. However, rising geopolitical tensions, investment gaps, and a growing disconnect between clean energy innovation and deployment where it is needed most threaten to undermine momentum.
The Fostering Effective Energy Transition 2025 report, developed in collaboration with Accenture, benchmarks the performance of energy systems of 118 countries across three performance dimensions – security, sustainability and equity – and five readiness factors: political commitment, finance and investment, innovation, infrastructure, and education and human capital. In 2025, 65% of countries improved their Energy Transition Index scores, with 28% advancing across all three core dimensions.
While advanced economies grapple with grid congestion, high prices and delivery bottlenecks, regions like Emerging Europe and Emerging Asia are making gains, driven by targeted reforms, improved infrastructure and growing clean energy investment.
'Energy systems are evolving at varying speeds,' said Roberto Bocca, Head of the Centre for Energy and Materials, World Economic Forum. 'We are seeing more holistic approaches and visible progress. It is encouraging that 28% of countries, including major energy consumers and producers like Brazil, China, the US and Nigeria, have advanced across multiple dimensions. Staying on track demands urgent investment in fast-growing emerging economies.'
The 2025 Energy Transition Index recorded a 1.1% year-on-year gain – the fastest since pre-COVID levels. Equity showed the strongest gains, aided by stable energy prices and subsidy cuts, while sustainability improved thanks to increased renewable energy adoption and improvements in energy efficiency. But energy security stagnated due to inflexible power systems, import reliance and limited diversification. Despite $2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tons in the hottest year on record, as energy demand rose 2.2% driven by artificial intelligence (AI), data centres, cooling and electrification.
'AI is the most transformative technology of our lifetimes and the single greatest lever of a more intelligent, adaptive and resilient energy future,' said Muqsit Ashraf, Group Chief Executive for Accenture Strategy. 'Leading companies are harnessing technology, data and AI to accelerate their reinvention and placing people at the core of that change – ultimately becoming more resilient and delivering long-term profitable growth.'
Energy Transition Index 2025 scores
Sweden, Finland and Denmark topped the Energy Transition Index, reflecting their long-standing policy commitment, robust infrastructure and diversified low-carbon energy systems. Norway and Switzerland rounded out the top five, underscoring renewed momentum in their energy transition. Austria, Latvia and the Netherlands followed closely, with strong performances in equity, clean energy capital flows and renewable energy capacity buildout. Germany and Portugal completed the top 10.
Among the top 20, China reached a record 12th place, fueled by its scale and leadership in innovation and clean energy investment. Brazil ranked 15th, leading Latin America with greater energy diversification, lower prices and rising clean energy use. The United Kingdom placed 16th, while the US rose to 17th overall and ranked 1st in energy security, supported by a diversified energy system and strong innovation.
India advanced on energy efficiency and investment capacity, while the United Arab Emirates recorded the strongest year-on-year gain in a decade, driven by rapid infrastructure upgrades, targeted subsidy reforms, rising clean energy use and lower energy intensity.
The report highlights three system-level priorities to keep the energy transition on track. These include redefining energy security beyond traditional supply concerns to include grid resilience and digital infrastructure; correcting capital imbalances, particularly in emerging economies; and addressing infrastructure bottlenecks, such as permitting delays, workforce gaps and grid capacity, which now constrain progress more than technology availability.
To sustain momentum and build resilience, the report calls for adaptive policies to attract long-term capital and foster cooperation; modernise infrastructure; invest in workforce skills and innovation; scale deployment of clean tech, especially in hard-to-abate sectors; and enhancing capital investment in developing economies.
Since 2021, over 80% of energy demand growth has come from emerging and developing economies, but more than 90% of clean energy investment has been seen in advanced economies and China, revealing a misalignment between capital flows and future demand.
Emerging Europe recorded the strongest gains with notable progress in infrastructure (+8.3%) and equity (+5.8%). Latvia scored the highest, whereas Bosnia and Herzegovina grew the most. Emerging Asia, with leadership from China, followed by Malaysia, has seen regulatory improvements (2.6%) and rising clean energy investment (18.7%).
Sub-Saharan Africa also made progress through stronger political commitment and financial flows. Notably, Nigeria made notable progress, rising from 109th place in 2016 to 61st in 2025. These trends underscore the growing impact of targeted reforms and localized transition strategies across diverse markets.
The Energy Transition Index emphasises the need for context-specific strategies, as energy systems evolve amid climate pressures, conflict and economic fragmentation. Sustained progress will also depend on resilience, adaptability, and stronger regional and global cooperation.
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