India ranks 63rd on WEF’s energy transition index

India has been ranked 63rd on the World Economic Forum’s (WEF’s) Energy Transition Index (ETI) with a score of 55.3, reflecting advances in new energy solutions, security and access.

The WEF report, “Fostering Effective Energy Transition,” highlights India and China’s progress in environmental transparency and policy frameworks, indicated by their improved ETI scores in the past decade.

Globally, Sweden topped the index, with Denmark, Finland, Switzerland and France rounding up the top five.

China, at 17^th rank, led the pack of emerging and developing Asian countries.

The report showed a slowdown in global energy transition towards a fair, secure, and environmentally friendly energy system, despite 107 out of 120 countries making progress in their energy transition over the past decade.

India prioritized both environmental and economic benefits, according to the report, by using renewable energy to create income and empower microenterprises.

Government policies actively promoted distributed renewable energy solutions that directly supported local livelihoods.

While generous subsidies have fueled the impressive rise of electric vehicles (EVs) in many countries, India’s focus on subsidizing electric two- and three-wheelers—used by a much broader demographic—as a strategy, ensured that a wider range of people can access and benefit from this mode of transportation.

India also made significant strides in its clean energy infrastructure, according to WEF, as renewable energy and biomass comprised 42% of its power generation capacity, solidifying its position as the world’s fourth-largest renewables market.

With annual investments nearing $10 billion, India has been driving the adoption of EVs and the production of green hydrogen.

“However, the significant dependence on coal in both China and India continues to be a major factor in their emission intensity,” said the report.

In 2023, India, along with France, China, Poland, and Belgium, showed improvement across equity, security, and sustainability, which highlighted the difficulty of establishing a balanced transition.

The report also highlighted the International Energy Agency prediction that estimates an 8% reduction in our energy needs by 2050.

However, it also mentioned that it would only be achievable if we fundamentally changed how we use energy, as both energy security and reduction in emissions will depend on prioritizing energy efficiency along with focusing on renewable energy sources, especially in the coming decade.

This was the challenge that developing nations like India faced, the report said, in order to balance environmental responsibility, affordability, and reliable energy access for their development goals.

“The prevalent notion of a linear correlation between economic growth and energy requirements no longer holds true,” the report added.

In India, CO2 emissions are 60% lower than the global average, but despite this, the country still needs to find ways to grow without increasing its energy consumption, it added.