Economy

India Falls to 71st Rank in Global Energy Transition Index: WEF

Among emerging economies, China led the “Emerging Asia” group, driven by strong innovation ecosystems and financial capacity.

India Falls to 71st Rank in Global Energy Transition Index: WEF

SolarMill installed at Mumbai Airport. (Representative image: Courtesy: Wikimedia Commons)

India has slipped eight places to rank 71 on the World Economic Forum’s (WEF) Energy Transition Index (ETI) 2025, down from 63 in 2024, marking a significant drop in its global standing on the path to clean energy transition.

Despite this decline, the WEF report highlighted improvements in India’s energy efficiency and investment capacity, acknowledging steady progress in specific areas.

The ETI, published annually by the WEF, assesses the performance of 118 countries in transitioning from fossil fuel-based energy systems to more sustainable, secure, and equitable energy models.

The ranking is based on two primary dimensions: “system performance”, which evaluates energy security, equity, and environmental sustainability; and “transition readiness”, which considers the strength of enabling conditions such as infrastructure, regulation, education, innovation, and investment.

India scored 53.3 overall, with a system performance score of 60.4 and a transition readiness score of 42.7.

While this places India in the lower half of the rankings, the report noted positive movement in key indicators such as energy intensity, methane emissions, regulatory frameworks, and financial investments.

Over the past decade, India has also improved access to energy and clean fuels, along with strengthening regulations and investment in renewables and other clean technologies.

However, challenges remain. The report flagged persistent issues related to grid reliability, rural energy access, and high dependence on imported fossil fuels. It stressed that enhanced investments in renewable infrastructure, skilled labour, and favourable financing conditions are essential to accelerating India’s energy transition.

In contrast, advanced economies continued to dominate the ETI rankings, with Sweden topping the list, followed by Finland, Denmark, and Norway—all of which scored above 75 and demonstrated robust long-term policy frameworks and infrastructure for clean energy.

Among emerging economies, China led the “Emerging Asia” group, driven by strong innovation ecosystems and financial capacity. China recorded a 2.2% year-on-year increase in its ETI score and ranked fifth globally in transition readiness.

Overall, 65% of the countries assessed in 2025 saw improvements in their ETI scores, reflecting a slow but broad recovery in global energy transition momentum. The report underscored that the five largest economies—China, the United States, the European Union, Japan, and India—will significantly influence the global pace of transition due to their size and energy consumption.

The WEF also cautioned that global energy systems are increasingly vulnerable to geopolitical tensions, extreme weather, and geoeconomic confrontations, which pose serious risks to energy transition strategies.

The report called for more resilient and adaptive approaches in the face of growing global disruptions, especially in regions with high reliance on fossil fuels.

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