Major emerging economies with high future energy demand including China, India, Brazil and Indonesia, have made significant improvements on the energy transition, according to a new World Economic Forum report, Fostering Effective Energy Transition 2023. Enabled by increasing volumes of clean energy investments, improving regulatory frameworks, technological innovations and urgency to address the climate crisis, the long-term trends of global energy transition are positive. Over the past decade, 95% of countries have improved their total Energy Transition Index (ETI) score, with improvements more pronounced for countries that consume a large amount of energy.
Broadly speaking, however, there are emerging challenges to the equity of the transition – just, affordable access to energy and sustained economic development – due to countries shifting their focus to energy security. After a decade of progress, the global energy transition has plateaued amid the global energy crisis and geopolitical volatilities.
“The recent turbulence in energy markets has exposed how interconnected energy prices are with macroeconomic and social stability. This can, and has, put developing countries at risk of losing their momentum gained before the energy crisis on access to affordable, sustainable energy,” said Roberto Bocca, Head of Energy, Materials and Infrastructure, World Economic Forum. “It further demonstrates the importance of balancing improvements in energy security, sustainability and equity – at the same time – to enable an effective energy transition.”
When it comes to progress on energy transition, the gap between advanced economies and emerging and developing countries in Asia, Central and Eastern Europe and Sub-Saharan Africa has gradually narrowed over the past decade.
“The focus must shift to helping more populous, developing nations make faster progress, which, while committed to decarbonization, lack the financial and technological capability to fully develop their renewable energy resources. Through greater collaboration and support we can enable a more equitable and sustainable future,” said Stephanie Jamison, Senior Managing Director and Global Resources Industry Practice lead, Accenture.
Source: World Economic Forum