On 19th June 2024, The World Economic Forum (WEF) in partnership with Accenture released its annual report titled “Fostering Effective Energy Transition 2024”. According to the report, India has been ranked 63rd on the global Energy Transition Index (ETI) 2024.
- The report noted that India has improved its rank by 3 places (India was ranked at 67th spot in 2023), due to significant improvement in domains of energy equity, security and sustainability.
- Sweden reclaimed the top spot in the ETI 2024 with an ETI score 78.4, followed by Denmark (75.2) and Finland (74.5) in 2nd and 3rd rank respectively.
- According to the report, Estonia, Ethiopia, and Lebanon have seen the fastest improvements in last 5 years.
About Global ETI 2024:
i.ETI 2024 framework offers comprehensive assessment of 120 countries’ energy system to compare and track the progress and preparedness for an equitable, secure and sustainable energy future.
ii.Out of these 120 countries, 107 countries have demonstrated progress on their energy transition journeys in the last 10 years, with only 30 countries saw an increase of more than 10% in their ETI scores.
- But, still global landscape faced challenges like: economic volatility, escalated geopolitical tensions, and technological shifts hindered its progress.
iii.Global Average ETI scores saw modest improvements, with modest improvements in system performance of about 0.2% and growth of 2% in transition readiness.
iv.ETI scores showed the growth rate of 0.22% for three-year Compound Annual Growth Rate (CAGR) in 2024 compared to 0.83% in 2021.
Top 5 Countries on ETI 2024 Ranking:
| Rank | Country | ETI Score |
|---|---|---|
| 1 | Sweden | 78.4 |
| 2 | Denmark | 75.2 |
| 3 | Finland | 74.5 |
| 4 | Switzerland | 73.4 |
| 5 | France | 71.1 |
| 63 | India | 55.3 |
Key Highlights:
i.France has been ranked at 5th spot with overall ETI score of 71.1. This improvement is due to its energy efficiency policies which resulted in a 12% reduction in energy intensity in 2022 compared to 2022.
ii.Six Group-20 (G20) countries: France, Germany (11), Brazil (12), China (17), the United Kingdom (UK) (13) and the United States of America (USA) (19) are featured among the top 20 in ETI 2024 ranking.
iii.The report highlighted that emerging economies like: China and Brazil have made significant progress. It underscored that China commissioned as much solar Photovoltaic (PV) capacity in 2023 as the entire world did in 2022.
iv.The report emphasized that improvement shown by India and other emerging economies such as: China and Brazil has great significance as 83% of countries have moved backwards last year in at least one the 3 energy system performance domains- security, equity and sustainability.
India-Specific:
i.The report highlighted that India has made significant strides in its clean energy infrastructure as renewable energy and biomass accounted 42% of its power generation capacity and thus, makes India , the 4th largest renewable market globally.
- With annual investments reaching USD 10 billion, India is promoting the adoption of Electric Vehicles (EVs) and the production of green hydrogen.
- The dependence on coal in both China and India continues to be a major factor in their emission intensity.
ii.The report highlighted that emerging and developing Asian countries, including India and China, showed an 8% improvement in ETI scores in last 10 years, mainly due to decreasing energy intensity.
iii.The reported noted that though, India’s per capita emissions is at 1.7 tonnes of Carbon Dioxide (CO2) which is 60% lower than the global average of 4.4 tonnes of CO2 per capita.
Key Points:
i.The report noted that since 2015, global average ETI scores has increased by 6% but showed slower growth in the last 3 years.
ii.As per the report, only 17% of countries in 2024 balanced the progres in dimensions of the energy triangle i.e. equitable, secure and sustainable.
iii.The Top 10 ranked countries in the ETI 2024 are mainly from advanced economies specifically, Northern Europe which accounted only 1% of energy-related CO2 emissions, 3% of total energy supply, 3% of energy demand and 2% of the global populations.
- As per ETI 2024, 53 countries have steady progress in last decade.
About World Economic Forum (WEF):
Founder- Prof. Klaus Schwab
Managing Director (MD)- Saadia Zahidi
Headquarters- Cologyny, Geneva Canton, Switzerland
Established – 1971
