The speed and trajectory of the global energy transition are now more important than ever. It is critical for both policy-makers and businesses to balance the three energy system priorities of equity, security and sustainability. It is also clear that there is no single universal answer for all countries. The Fostering Effective Energy Transition report, now in its 14th edition, benchmarks energy system performance and readiness for the transition through the Energy Transition Index (ETI) and provides insights across nations.

In the past decade, the sustainability dimension of energy system performance has improved with a shift to renewables and the integration of electric vehicles into mainstream use. However, progress has been uneven globally. Aside from increased adoption of wind and solar, it has not kept pace with the trajectory needed to reach net zero by 2050, particularly regarding energy efficiency gains, system electrification and adoption of low-carbon energy sources and fuels. In a significant step forward, recent decisions at the 28th Conference of the Parties (COP28) aim to double energy efficiency and triple renewable energy capacity by 2030, and transition away from fossil fuels in a just and equitable manner.

Equity-focused policies and decisions are gaining prominence. However, investments in developing nations remain insufficient, and challenges persist within and across countries, especially in energy affordability and access. Meanwhile, energy security risks need to be managed effectively amid rising geopolitical tensions. ETI data shows that while countries have managed to address security shocks in recent years, this comes at the expense of equity and sustainability.

Countries are ramping up efforts to enhance transition readiness, including human capital development, where clean jobs represent more than half of all energy-related jobs. Clean energy infrastructure investments have also been increasing, reaching $1.8 trillion in 2023, but almost 90% of the growth since highlighting wide gaps in transition momentum. has been in advanced economies and China,¹ highlighting wide gaps in transition momentum.

Digital innovations, including generative artificial intelligence (AI), present significant opportunities for energy companies, enabling them to generate over $500 billion in savings annually.² This can enhance equity and security by enabling additional capital investment or reducing energy supply costs. Nevertheless, as these technologies advance, the electricity needed for their computational demands will increase and must be managed carefully through the adoption of more efficient AI models and clean energy sources.

While ETI scores have reached record highs and shown notable improvements across various dimensions, the pace of progress has slowed, partly due to growing uncertainties in the global landscape. The ETI provides decision-makers with a comprehensive assessment of global energy systems and trends over time. This year’s edition maintains consistency with last year’s methodology, enabling stakeholders to make comparisons and track developments. The 2024 ETI also introduces “tailored pathways,” providing new perspectives on country pathways and global collaboration. These pathways allow decisionmakers to consider country-specific dimensions, such as income level, local energy resources and region, to maximize impact and advance the energy transition.