WEF Report: 65 Pct Of Countries Improve Energy Transition Performance
KUALA LUMPUR, June 18 (Bernama) -- The World Economic Forum (WEF) 2025 Energy Transition Index showed the fastest progress since pre-COVID-19, with 65 per cent of surveyed countries improving and 28 per cent advancing across all core dimensions of energy system performance -- security, sustainability and equity.
In a statement, WEF said that based on its report titled “Fostering Effective Energy Transition”, as 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.
WEF’s Centre for Energy and Materials head Roberto Bocca said energy systems, which are evolving at varying speeds, are seeing more holistic approaches and visible progress.
“It is encouraging that 28 per cent of countries, including major energy consumers and producers like Brazil, China, the United States and Nigeria, have advanced across multiple dimensions.
“Staying on track demands urgent investment in fast-growing emerging economies,” he said.
Meanwhile, according to the report, the index recorded a 1.1 per cent year-on-year gain, the fastest since pre-COVID levels.
The report stated that the equity dimension showed the strongest gains, aided by stable energy prices and subsidy cuts, while sustainability improved, owing 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 US$2 trillion (US$1=RM4.23) in clean energy investment in 2024, emissions hit a record 37.8 billion tonnes in the hottest year on record, as energy demand rose 2.2 per cent, driven by artificial intelligence, data centres, cooling and electrification,” it said.
The report also highlighted three system-level priorities to keep the energy transition on track.
“These include redefining energy security beyond traditional supply concerns to include grid resilience as well as digital infrastructure, and correcting capital imbalances, particularly in emerging economies.
“Addressing infrastructure bottlenecks, such as permitting delays, workforce gaps and grid capacity, which now constrain progress more than technology availability, (is also a priority),” it said.
To sustain momentum and build resilience, the report called for adaptive policies to attract long-term capital and foster cooperation, modernise infrastructure, invest in workforce skills and innovation, scale deployment of clean technology, especially in hard-to-abate sectors, and enhance capital investment in developing economies.
It said that since 2021, over 80 per cent of energy demand growth has come from emerging and developing economies, but more than 90 per cent of clean energy investment has been seen in advanced economies and China, revealing a misalignment between capital flows and future demand.
“Emerging Asia, led by China and followed by Malaysia, showed regulatory improvements of 2.6 per cent and a sharp increase in clean energy investment of 18.7 per cent,” it added.
The WEF report, developed in collaboration with Accenture, benchmarked 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.
-- BERNAMA