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Energy Transition Index (ETI)

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June 21, 2025

Prelims : Current events of National and International Importance | Energy

Why in News?

From a rank of 63 in 2024, India has now slipped to rank 71 on the Energy Transition Index (ETI).

  • It ranks countries on their progress towards energy transition from fossil fuels to clean energy.
  • Developed by - World Economic Forum (WEF), an international non-profit for public-private cooperation set up in 1971.
  • The report that compared the annual progress of 118 countries also noted that India had advanced in energy efficiency and investment capacity.
  • Main Aspects - The Forum takes into account 2 main aspects to put together the Index.
  • One is system performance, which includes 3 factors
    • Energy security (the presence of a stable and resilient energy supply through developing a diversity of energy sources as well as grid and power supply reliability),
    • Equity (wherein there is access to energy for all, including consumers and industries) and
    • Sustainability (promoting energy sources that have lower impacts on the environment, such as lower carbon footprints).
  • The second is transition readiness, which includes regulation (legal structures that facilitate energy transition), infrastructure, education, innovation, and investment capacities.
  • The Index used 43 indicators under these broad categories, using data from multiple sources and organisations, and scored countries on a scale of 0 to 100.
  • Rankings - In 2025, 77 out of 118 countries (65%) recorded an increase in their overall ETI scores, with an average gain of 1.1% that signals a broad, though uneven, recovery in transition momentum.
  • Overall, advanced economies dominated the ETI rankings, accounting for 16 of the index’s top 20 performers.
  • The top 4 are all Nordic countries - Sweden, followed by Finland, Denmark, and Norway.
  • India’s Position - At rank 71, India scored 53.3 on the Index.
  • India’s system performance score was 60.4, and its transition readiness score was 42.7.

Reference

The Wire | Energy Transition Index

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