According to the “Fostering Effective Energy Transition 2024” report by the World Economic Forum (WEF), countries have made significant strides in energy transition. However, economic volatility, geopolitical tensions, and technological changes are slowing the process.
Topping the Energy Transition Index (ETI) are Sweden, Denmark, Finland, and Switzerland, all of which are developed economies. France also ranks in the top 5 due to its effective energy policies.
The report notes that the top 10 countries account for only 2% of the global population and contribute just 1% of CO2 emissions. These nations enhance energy security through a diverse mix of energy sources, an increased share of clean energy, carbon pricing mechanisms, and supportive legal frameworks.
Emerging economies such as China and Brazil have also made significant progress. China deployed substantial solar photovoltaic (PV) capacity in 2023, and Brazil plans to develop hydropower and biofuels to attract investors.
Estonia, Ethiopia, and Lebanon have recorded the fastest improvements over the past five years by prioritizing off-grid renewable energy to enhance access and sustainability.
Developing countries leading the energy transition include Lebanon, Ethiopia, Tanzania, Zimbabwe, and South Africa. These nations are committed to reducing fossil fuel subsidies, decentralizing renewable energy, and increasing clean energy sector jobs.
Vietnam stands at 32nd for this index.
The report indicates that the momentum for energy transition is slowing. Besides increasing wind and solar energy adoption, investment in clean energy has not reached the necessary speed to achieve net-zero emissions by 2050, especially in energy efficiency, electrification of the grid, and the adoption of low-carbon energy sources and fuels.
Inflation and high interest rates have tightened energy markets and raised prices, making it difficult for developing countries to invest in sustainable energy solutions.
Moreover, geopolitical tensions have affected the transition speed in some countries. For instance, Germany increased coal production by 35% in 2022 to compensate for reduced dependence on Russian gas.
The report also highlights significant gaps in transition momentum. Nearly 85% of investment in clean energy infrastructure was reported in advanced economies.
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Duy Anh (Source: WEF)
