Global Energy Transition Faces Slowdown Amid Rising Uncertainty

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Top 20 Countries in ETI 2024
Top 20 Countries in ETI 2024

The World Economic Forum’s latest report on global energy transition reveals a deceleration in progress amidst increasing global volatility.

Published in collaboration with Accenture, the report highlights that while European nations dominate the Energy Transition Index (ETI) 2024, including Sweden, Denmark, and Finland in the top spots, the overall pace of global energy transformation has slowed significantly.

Key findings indicate that economic instability, geopolitical tensions, and technological shifts have hindered the momentum of the energy transition. Despite advances in renewable energy investment and growth in sub-Saharan Africa, 83% of countries have regressed in at least one energy system performance dimension – security, equity, or sustainability.

The report underscores the narrowing gap between energy transition performance in advanced and developing economies, despite persistent disparities in investment and regulatory frameworks. Urgent action is recommended to reform energy systems, deploy clean energy solutions at scale, and reduce energy intensity per unit of GDP to accelerate progress.

Top G20 economies such as Germany, Brazil, the United Kingdom, China, and the United States have shown significant improvements, with Brazil and China notable for their strides in renewable energy adoption and grid reliability enhancements.

However, the report emphasizes the critical need for equitable global investment in energy transition initiatives, particularly in developing nations, to achieve sustainable and secure energy futures. Innovation, including generative AI, is identified as pivotal for enhancing productivity and attracting essential investments amidst current economic challenges and talent shortages.

The World Economic Forum calls on global leaders to take decisive action to reignite momentum towards achieving equitable, secure, and sustainable energy systems, crucial for combating climate change and fostering global economic stability.

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