World Economic Forum Releases “Fostering Effective Energy Transition 2024” Report

Posted 20 Jun 2024

2 min read

Report is based on the Energy Transition Index (ETI) that evaluates 120 countries on their energy system performance and readiness for secure, sustainable, and inclusive energy systems.

The energy transition (ET) refers to shift from fossil fuels to renewable energy sources to reduce CO2 emissions

Key Findings

Investment Trends: Clean energy infrastructure investments reached $1.8 trillion in 2023, with nearly 90% of the growth since 2021 occurring in advanced economies and China.
Top Performers: Sweden, Denmark, Finland, Switzerland and France are the top five performers.
- Six G20 countries are among the top 20 performers: France, Germany, Brazil, China, the UK, and the USA.
- India is ranked 63rd on the ETI.
Net-Zero Emissions: Eight countries (Bhutan, Comoros, Gabon, Guyana, Madagascar, Niue, Panama, and Suriname) reached net-zero emissions in 2022.
Digital Innovations: Generative AI can enable energy companies to save over $500 billion annually.

Challenges in ET

Lack of incentives for private sector investment in clean electricity.
Only 6% of G20 recovery funding is directed towards clean energy.
Ongoing subsidies for fossil fuels.
Some advanced economies and large energy companies are rolling back critical energy transition commitments.

Initiatives in Energy Transition

Global Renewables and Energy Efficiency Pledge: Signed by 133 countries at COP 28 (UAE), calls for tripling the rate of renewables capacity by 2030.
Addressing Technology Gaps for Energy Transitions: Initiatives of G 20.
Just Energy Transition Partnerships: Launched by the International Energy Agency & WEF in 2022 to support developing countries in their transition towards clean energy.
Carbon Border Adjustment Mechanism (CBAM): It was launched by the EU in 2023.