The Global Energy Transition Index

The ‘Global Energy Transition Index 2020’ has been launched recently.

About the report

1. It is a fact-based ranking intended to enable policymakers and businesses to plot the course for a successful energy transition.

2. It analyses the energy sectors of 115 countries and benchmark countries on their current energy system performance annually.

3. It also provides a forward‑looking way as it measures the readiness of countries for the energy transition.

4. It is a part of the World Economic Forum’s Fostering Effective Energy Transition initiative and based on its predecessor, the Energy Architecture Performance Index.

Findings

1. 94 countries have improved their ETI score since 2015, representing 70% of the global population.

2. 20% of the global population uses as much energy as the remaining 80%.

3. 70% of young people consider the speed of energy transition to be either stagnant or too slow.

4. The index has been topped by Sweden. It is followed by Switzerland, Finland, Denmark, Norway, respectively.

5. India has moved up two positions to rank 74th from 76th in the last edition.

6. India has shown improvements in all key parameters of economic growth, energy security, and environmental sustainability.

7. COVID-19 could threaten the rate at which economies adopt more sustainable power.

8. Robust long-term policies are needed to guard against shocks such as the pandemic and climate change.

Effective energy transition

1. The effective energy transition is timely, inclusive, sustainable, affordable, and secure.

2. It provides solutions to global energy-related challenges while creating value for business and society, without compromising the balance of the energy triangle.

     3. An effective energy transition needs to balance the priorities of diverse stakeholder groups.

Effects of COVID19

1. The transformation of the energy system over the past decade has been significant.

2. But it is being impacted by the COVID‑19 pandemic that continues to cause economic and social damage.

3. COVID-19 has resulted in cascading effects in real-time

a) The erosion of almost a third of global energy demand

b) Unprecedented oil price volatilities and subsequent geopolitical implications

c) Delayed or stalled investments and projects

d) Uncertainties over the employment prospects of millions of energy‑sector workers