Despite notable progress in energy efficiency and clean energy investment, India has slipped to 71st position in the World Economic Forum’s (WEF) Energy Transition Index 2025, falling eight places from last year. The index, which ranks 118 countries based on their performance across energy security, sustainability, and equity, places Sweden, Finland, and Denmark at the top. While India’s ranking declined, the WEF acknowledged the country’s significant improvements in energy access, regulatory frameworks, and transition readiness.
Why in News?
On June 18, 2025, the World Economic Forum (WEF) released its annual Energy Transition Index (ETI). India ranked 71st, down from 63rd in 2024, even as it made notable improvements in energy investment capacity and efficiency. The report emphasizes the growing influence of top economies—India, China, US, EU, and Japan—in shaping the global energy transition.
Key Highlights
- Ranking Decline: India moved down from 63rd (2024) to 71st (2025) out of 118 countries.
- Top Performers: Sweden (1st), Finland (2nd), Denmark (3rd), Norway (4th), and Switzerland (5th).
Other Countries
- China: Ranked 12th
- USA: Ranked 17th (led in energy security)
- Congo: Ranked last
India’s Performance
Strengths
- Improvement in energy efficiency, regulatory frameworks, and investment in clean energy
- Access to energy and clean fuels expanded significantly in the last decade
- Lower energy intensity and methane (CH₄) emissions
Challenges
- Energy equity and security still need more progress
- Dependency on imported fuels
- Grid reliability and rural energy access gaps remain
Global Observations:
Uneven Progress
- Only 28% of countries improved in all three dimensions (security, sustainability, equity)
- 77 out of 118 countries improved their overall ETI scores
Key Concern
- Despite $2 trillion global clean energy investments in 2024, emissions hit a record 37.8 billion tonnes
- Rising AI-related power demand, geopolitical tensions, and lack of deployment where needed most are slowing impact
Report Source and Methodology
- Title: “Fostering Effective Energy Transition 2025”
- Released by: World Economic Forum (WEF) in collaboration with Accenture
- Dimensions: Performance across 3 pillars (security, sustainability, equity)
- Readiness Factors: 5 – Political commitment, finance, innovation, infrastructure, and human capital
Summary/Static | Details |
Why in the news? | Fostering Effective Energy Transition 2025 |
Released By | World Economic Forum (WEF) with Accenture |
India’s Rank | 71st (2025); down from 63rd (2024) |
Global Top Ranker | Sweden |
Top 5 Countries | Sweden, Finland, Denmark, Norway, Switzerland |
India’s Strengths | Energy efficiency, clean fuel access, investment capacity |
India’s Weaknesses | Equity, grid reliability, energy security |