The global energy transition is accelerating, with 65% of countries improving their Energy Transition Index (ETI) scores in 2025, according to the World Economic Forum’s latest report. This marks a 1.1% year-on-year increase—more than double the average pace of the past three years.
The ETI evaluates 118 countries on energy system performance—security, equity, and sustainability—and transition readiness, including infrastructure, policy, and investment. While equity saw the strongest rebound due to moderating energy prices and subsidy reforms, sustainability continued its steady climb, driven by increased renewable adoption and energy efficiency. However, energy security stagnated, hindered by import dependence and inflexible power systems.
Emerging Europe and Asia led regional improvements. Latvia and Bosnia and Herzegovina posted the fastest gains in Europe, while China and Malaysia led in Asia. Sub-Saharan Africa also showed promise, with Nigeria climbing from 109th in 2016 to 61st in 2025, thanks to targeted reforms and infrastructure upgrades.
Despite these gains, only 28% of countries advanced across all three core dimensions, highlighting the fragmented nature of the transition. Advanced economies continue to lead, but face challenges like grid congestion and high energy prices. Meanwhile, developing nations struggle with financing and institutional capacity.
The report underscores that the transition is no longer linear. Decentralization, digitalization, and geopolitical shifts are reshaping energy systems. The rise of AI and data centers is also driving up electricity demand, adding pressure to already strained grids.
Experts emphasize the need for adaptive, locally tailored strategies. “Energy systems are evolving at varying speeds,” said Roberto Bocca of the World Economic Forum. “We need flexible policies that attract long-term capital, modernize infrastructure, and support innovation.”