The World Economic Forum’s 2025 Energy Transition Index reveals that the global shift towards more secure, sustainable and equitable energy systems is picking up pace, with the fastest annual progress recorded since before the COVID-19 pandemic. Of the 118 countries assessed, 65% improved their scores, and 28% advanced across all three core dimensions: energy security, environmental sustainability, and affordability or equity.
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Sweden, Finland, Denmark, Norway and Switzerland topped the rankings, benefiting from long-standing policy commitments, well-developed infrastructure, and diversified low-carbon energy sources.
Austria, Latvia, the Netherlands, Germany and Portugal also featured in the top ten. Notably, China climbed to 12th place due to its scale, innovation, and investments in clean energy, while Brazil, leading in Latin America, came in 15th.
The UK ranked 16th overall, and the US followed at 17th, taking the top spot for energy security owing to its diverse energy mix and strong innovation ecosystem.
Despite a record $2 trillion invested in clean energy in 2024, the year also saw carbon emissions reach an all-time high of 37.8 billion tonnes — against the backdrop of the hottest year ever recorded.
Energy demand rose by 2.2%, largely driven by artificial intelligence applications, data centres, electrification, and increased cooling needs.
While sustainability and equity have shown improvement, energy security remains a sticking point, hindered by inflexible grids, import dependence, and insufficient diversification.
Emerging Europe made the most substantial strides, particularly in infrastructure (+8.3%) and equity (+5.8%), with Latvia leading the region and Bosnia and Herzegovina seeing the greatest improvement.
Emerging Asia, led by China and Malaysia, also outperformed the global average, supported by regulatory reform and an 18.7% increase in clean energy investment.
Sub-Saharan Africa demonstrated progress through stronger policy commitments and improved financial flows, with Nigeria notably climbing from 109th place in 2016 to 61st in 2025.
Fostering Effective Energy Transition 2025
The report — produced in collaboration with Accenture — stresses that energy systems are evolving at different speeds worldwide.
While advanced economies struggle with grid bottlenecks, high prices, and delivery delays, several emerging markets are progressing thanks to targeted reforms and infrastructure development. However, a major imbalance remains: since 2021, over 80% of global energy demand growth has come from emerging and developing countries, yet more than 90% of clean energy investment has occurred in wealthier nations and China.
Three main systemic challenges must be addressed to maintain momentum: redefining energy security to include digital infrastructure and grid resilience; tackling capital imbalances, particularly in the Global South; and removing infrastructure bottlenecks, including permitting issues, skills shortages, and grid limitations.
To succeed, the report urges governments and industry leaders to adopt adaptive policies that attract long-term investment, modernise energy infrastructure, improve skills and innovation, and accelerate clean energy deployment, especially in harder-to-decarbonise sectors. It also underscores the importance of tailoring transition strategies to local conditions amid rising geopolitical tensions, climate pressures, and economic fragmentation.
