‘India records one of the greatest improvements in readiness’: WEF calls it a key player in global energy transition

The World Economic Forum’s Energy Transition Index (ETI) report said India advanced two places in the ETI rankings through stronger readiness and broad-based system improvements.

‘India records one of the greatest improvements in readiness’: WEF calls it a key player in global energy transition

Representative Image (IANS)

India has emerged as a standout performer in the global energy transition landscape, with the World Economic Forum’s Energy Transition Index (ETI) report noting that the country recorded “one of the greatest improvements in readiness” driven by major gains in infrastructure and human capital.

The report said India advanced two places in the ETI rankings through stronger readiness and broad-based system improvements, with a sharp rise in infrastructure alongside progress in equity, sustainability and financial investment.

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The WEF noted that India is positioning itself as “a key player in the next phase of the transition.”

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Global energy transition faces slowdown

The report highlighted that while more than half of the world’s nations improved their energy transition metrics in 2026, progress across all major areas remained limited.

According to the findings, 56 per cent of countries improved their ETI scores this year. System performance scores rose on average by 0.43 per cent, supported by improvements in equity and sustainability.

However, only 24 per cent of countries achieved simultaneous progress across all three core system performance dimensions, compared to 28 per cent in 2025.

The report said overall ETI scores remained largely flat in 2026, increasing by only 0.03 per cent, as gains in system performance were offset by the first decline in transition readiness in more than a decade.

Energy security challenges widen global gap

The WEF report pointed to geopolitical and economic disruptions as major factors affecting the global transition.

It noted that disruptions to the Strait of Hormuz have intensified existing vulnerabilities, while geopolitical fragmentation, rising demand and concentrated investment flows have increased the divide between leading and lagging economies.

Despite record investment levels, the report said capital flows have not translated equally into long-term stability.

Global energy investment reached USD 3.3 trillion, including USD 2.3 trillion in clean energy, but energy security weakened and transition readiness declined, highlighting the gap between investment and the conditions required to sustain progress.

Finance remains a major hurdle

The report identified finance and investment as the biggest area of decline, dropping by 1.8 per cent.

The WEF said 75 per cent of clean energy investment is concentrated in a few markets, while countries expected to contribute 80 per cent of future demand growth face financing costs two to three times higher than advanced economies.

This uneven distribution of capital has become a key challenge for the next phase of the energy transition.

India gains momentum among emerging economies

While advanced economies continued to lead the rankings, with Nordic nations maintaining top positions, emerging markets showed mixed results.

India ranked 70th globally but recorded one of the stronger readiness improvements among major economies.

The report attributed India’s progress to investments focused on energy security and affordability, strengthening its position in the evolving global energy transition.

Three priorities for the next phase

The report said the future pace of transition will depend not only on investment levels but also on building stronger foundations for resilience and long-term sustainability. The 2026 ETI outlined three key priorities to sustain and accelerate energy transition progress:

  • Embed security, affordability and resilience as core design principles
  • Accelerate grid expansion and improve system integration
  • Restore investability through stable policies and targeted capital flows

 

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