The global energy transition has all of a sudden stumbled upon an unforeseen issue, specifically where record investments in clean energy no longer guarantee advancement. Even though in 2025 global investments hit USD 3.3 billion, there’s been a downward shift in countries’ preparedness for deeper energy sector transformations, marking the first such decline over a decade. This trend is underscored in the annual report titled Energy Transition Index 2026 which was issued by the World Economic Forum. Within the frame of this study the Forum experts working in collaboration with the company called Accenture assessed the current condition of energy systems across 120 countries using these criteria: environmental resilience, availability of energy, and subsequent readiness for energy transition.
It has been shown through analysis that energy distribution is becoming increasingly fragmented worldwide. While historically many nations prioritized lowering emissions and fostering renewable energy, currently energy security, supply sustainability, and affordability for both economies and citizens are top concerns.
Moreover, alongside persistent geopolitical conflicts, the energy sector faces challenges due to a substantial increase in global energy consumption, which was estimated to rise by approximately 3% in 2025. Key drivers included the electrification of transportation and industry, the widespread adoption of air conditioning systems, the growth of data centers, and advancements in artificial intelligence technologies. In various countries however, the advancement of energy infrastructure is slower than anticipated.
Yet another issue that persists is the uneven allocation of investments: approximately 75% of total clean energy investments are still concentrated in just a few countries. Similarly, around 80% of the projected increase in future energy demand is anticipated in emerging economies, which are facing higher financing costs and infrastructure shortages.
Overall, the 2026 index showed little change compared to the previous year, indicating a slowdown in global progress. Some 60% of countries have improved their performance, but only one in four has shown simultaneous growth across all three key areas.
North European countries continue to lead the ranking. A key finding this year was Singapore, which climbed ten spots due to revamped regulatory policies and enhanced governmental backing. Among the world’s top 20 economies, nations like Germany, France, the United Kingdom, China, Brazil, and the US featured prominently.
China is ramping up investments in renewable energy at unprecedented rates, India exhibits one of the fastest growth rates for energy transition readiness, and sub-Saharan Africa is demonstrating the quickest progress among all regions. In contrast, Latin America, along with Middle Eastern and North African countries, have endured through various indicators due to reduced investment activity and faltering political backing for energy transformation.
Experts from the World Economic Forum highlight that the successful continuation of the energy transition will rely less on investment than on a country’s capacity to concurrently ensure energy supplies, build infrastructure, and foster conditions conducive to long-term investments. From their perspective, states that can integrate these three directions will hold a clear advantage in the forthcoming energy landscape.
