Global Energy Transition Index

By : Neha Dhyani

Updated : Apr 1, 2022, 12:04

Global Energy Transition Index is a crucial enabler of sustainable development and climate resilience. Primarily, the index measures promptness to shift to efficient, stable, accessible, and inclusive energy systems.

The global energy transition index benchmarks 115 countries. It evaluates the country's energy system's performance based on the 3 dimensions: environmental sustainability, economic development growth, and energy security access indicators.

The Energy Transition Index (ETI) benchmarking benefits energy-decision makers who strive to be a global index. It is solely because it facilitates performance tracking of energy systems at the national levels based on the ranking list is launched every year. Moreover, it also incorporates geopolitical, institutional, social, and economic considerations facilitating effective energy transition.

Global Energy Transition Index - Concept

The energy transition was the much-needed global energy sectorial shift to create value for the environment and business without disrupting the balance of the energy triangle.

Primarily, it can be defined as the transition from fossil-based systems of energy production-consumption, such as coal, oil, and natural gas to renewable energy resources including solar, wind, and lithium-ion batteries.

The primary vital drivers of the energy transition are the onset of advancement in energy storage and the rising penetration of renewable energy into the energy supply mix.

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Reason for the Global Energy Transition Index in News

As per the recently published report, India ranked 87th in the ETI 2021. However, the best part is that India witnessed an immense improvement in the energy transition over the past few years due to its increasingly diverse energy resources and the share of renewables.

So, the global energy transition index has been in the news lately because of the perspective of UPSC examinations on many fronts, be it the preliminary or the main exam for IAS.

Crucial Observations - Global Energy Transition Index

  • While Sweden topped the 2021 ETI, only France and the United Kingdom featured in the top 10 out of the world's 10 largest economies.
  • Only 25% of the countries are able to meet 3 parameters of the energy triangle.
  • The average ETI scores have increased to 8 in the last 10 years.
  • Only 13 countries have made consistent gains in the past decade on the basis of their energy performance.
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FAQs on Global Energy Transition Index

Q.1. Who prepares the global energy transition index?

Besides leading the Global Energy Transition Index list rankings in 2020, Sweden is authorized to prepare a transitional index.

Q.2. What was India’s rank in Global Energy Transition Index 2021?

India was ranked 87th in the 2021 Global Energy Transition Index among 115 countries. The report of the country's rankings in the energy transition index was published by WEF (World Economic Forum), prepared in collaboration with Accenture to evaluate India's current performance on their energy systems after considering all pivotal factors.

Q.3. Who topped the Global Energy Transition Index 2021?

The Global Energy Transition Index report for 2021 was introduced on April 21, 2021. Sweden topped the Global Energy Transition Index 2021 just like it did in the previous year. Furthermore, the top 10 countries in the list of ETI are Northern and Western European countries.

Q.4. What are the Impacts of Covid-19 on the Global Transition Index?

The setbacks caused by the pandemic in the Global Energy Transition Index include:

  • Unprecedented oil prices are a matter of concern for geopolitical implications.
  • Procrastination or delaying in investments and projects.
  • 1/3rdof global energy demand eroded.
  • Employment prospects became uncertain, specifically for energy-sector employees/workers.