Global Energy Transition Index (ETI) 2025: Key Highlights, Top Performers & India’s Rank

The Energy Transition Index (ETI) 2025, released by the World Economic Forum (WEF), is a global benchmark that tracks how countries are moving toward secure, affordable, and sustainable energy systems. It evaluates each nation’s progress in shifting from fossil fuels to cleaner energy through policy measures, investments, innovation, and regulatory frameworks. In 2025, India ranked 71st out of 118 countries, highlighting significant gains in renewable energy expansion and electricity access, while also underlining challenges such as grid readiness, energy equity, and continued dependence on coal. 

The topic of the Energy Transition Index 2025 is relevant to General Studies Paper 3 (GS 3) of the UPSC Civil Services syllabus. Questions from the Energy Transition Index may appear under sections dealing with sustainable development, environmental challenges or initiatives for clean energy in UPSC.

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What is the Energy Transition Index (ETI)?

The Energy Transition Index is a composite indicator devised and updated annually by the World Economic Forum (WEF). Its purpose is to track and rank national energy systems in terms of both their current performance and future readiness for cleaner, more sustainable energy. It answers three key questions:

• How secure, accessible, and environmentally sustainable is a country’s energy system today?

• How prepared is this country for a transition to cleaner forms of energy?

• Which aspects of policy, investment, infrastructure, and innovation need attention?

ETI is based on almost 40 detailed indicators, grouped under two broad categories:

Energy System Performance

• Security & Access: This looks at how stable, reliable, and accessible the country’s energy supply is.
• Economic Development & Growth: Here, the focus is on energy’s role in driving industry, business, and national economic growth.
• Environmental Sustainability: This assesses environmental impacts, carbon emissions, and use of renewables.

Transition Readiness

• Regulation & Political Commitment: Whether policies favor and support energy transition.
• Capital & Investment: The country’s ability and track record in mobilizing money for new energy tech and infrastructure.
• Consumer & Human Capital: Skill levels, public awareness, and active stakeholder involvement.
• Infrastructure & Innovation: Grid quality, integration of renewables, and support for innovation, R&D, and technology.

All these sub-indicators are weighted and combined to form each country’s final ETI score (ranging from 0 to 100), and annual rankings showcase relative progress and areas needing reform.

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The Global Energy Transition Index 2025 gives a comprehensive view of the present energy landscape and the progress made by countries worldwide towards sustainable and secure energy. Here are the detailed highlights:

Top Performers

The top spots in ETI 2025 remain dominated by Nordic countries, who are globally recognized for their advanced energy systems:

• 1 - Sweden (1st overall for the sixth year)—Set apart by high shares of renewables, robust grid infrastructure, and progressive energy policies.
• 2 - Finland and 3 - Denmark consistently score high owing to excellent energy security, innovation in clean technologies, and low carbon footprints.
• Other leaders in the top 10 include Norway, Switzerland, France, Austria, Iceland, the UK, and Germany—countries that combine economic strength with aggressive decarbonization and widespread electrification efforts.

India’s Rank and Trends in the Energy Transition Index

• India’s ETI 2025 rank is 71st out of 118 countries. This represents a drop from its 63rd rank in 2024, driven mainly by challenges in “transition readiness” scores like infrastructure flexibility, grid innovation, and uneven clean energy access.
• India’s Energy System Performance score stands at 60.4, showing continued improvement in output, cleaner energy mix, and access.
• Transition Readiness score is 42.7, reflecting slower progress in investments, regulatory flexibility, and building human capital compared to many other emerging economies.
• India, however, outperformed many peers in rapidly expanding solar and wind capacity, electrifying rural areas, and growing the share of renewables in the power mix.

Global Trends and Progress

• Global shift to clean energy is accelerating: Around USD 2 trillion was invested in clean energy worldwide in 2024, a record figure, but still not enough to reach net zero emissions targets by mid-century.
• Electrification of transport and industry is gaining pace: Sales of electric vehicles and investments in grid-scale storage saw robust year-on-year growth, especially in Europe, China, and selected US states.
• CO₂ emissions remain historically high: Despite progress, global carbon dioxide emissions hit 37.8 billion tonnes in 2024, underlining the urgency for faster adoption of clean energy.
• Transition gaps persist: Only 28% of countries showed improvements in all three ETI dimensions—security, sustainability, and equity; energy poverty and access issues linger, especially in Africa and parts of Asia.

Regional Comparison of ETI Ranks

India and China—Asia’s two largest economies have both improved their clean energy access, regulatory transparency, and investment climate, but China is progressing faster in “transition readiness” and has now overtaken India in the top 15 globally.

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India’s performance on the ETI reflects both impressive achievements and significant barriers:

Strengths

• Expanded Access: Almost 100% village electrification in recent years thanks to government schemes, and millions of new households gaining access to clean cooking fuels.
• Fastest-growing renewable energy market: India’s installed capacity for solar and wind combined crossed 175 GW in 2025, with ambitious targets for 500 GW of non-fossil fuel energy capacity by 2030.
• Energy Efficiency: Nationwide programs for efficient lighting, appliances, and improved standards for industrial energy usage.
• Government Policy Push: Initiatives like the National Solar Mission, Green Energy Corridors, and reforms to private sector investment models.
• Steady energy security: India has robust power production and is improving its grid reliability to minimize outages.

Challenges

• Coal Dependence: More than 50% of electricity generated in India still comes from coal, creating pollution and carbon intensity that impacts global and domestic climate goals.
• Infrastructure Gaps: Grid flexibility, renewable integration, and rural-urban infrastructure gaps remain persistent weak spots.
• Finance and Investment: Clean energy projects still face high upfront costs, complex regulatory approvals, and difficulties in accessing long-term funding, especially for distributed generation and innovation.
• Transition Readiness: India’s rank slipped due to lower scores in readiness—a mix of less resilient infrastructure, shortage of skilled workforce in new energy technologies, and variable policy implementation at the state level.
• Energy Equity and Affordability: Regional disparities—urban centers see the most benefits of energy transition, while some remote areas face higher costs and lower energy quality.

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Why is the Energy Transition Index Important for India?

The Energy Transition Index holds the following significance for India:

• Informs Policy: The ETI provides direct feedback to policymakers on where reforms, investments, and outreach are most urgently required, enabling evidence-based energy policy.
• Tracks International Goals: It is a key tool for assessing progress toward India’s climate commitments under the Paris Agreement and Sustainable Development Goals (SDGs).
• Attracts Investment: A rising global ETI rank enhances India’s credibility as a destination for international green capital, joint ventures, and innovation partnerships.
• Encourages Competition: The index fosters healthy competition among states and between countries, encouraging the adoption of best practices.

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India’s path to a cleaner, greener energy future is promising but not without roadblocks:

• Financial Barriers: Access to affordable, long-term finance still lags, particularly for grid upgrades, decentralized renewables, and residential solar.
• Domestic Fossil Fuel Interests: Coal and oil-based power dominate energy markets and exert significant policy and regulatory influence.
• Regulatory Complexity: Central and state-level clearance requirements, changing tariff structures, and delayed approvals pose difficulties for energy transition projects.
• Awareness & Skills: There is considerable need to build public awareness of the benefits of renewables, and to augment workforce capability in new and smart energy technologies.
• Technology & Innovation Gaps: R&D needs to focus more on battery storage, smart grids, hydrogen, and affordable clean cooking solutions.

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Way Forward for India

India’s ability to climb higher on the global energy transition index depends on urgent and sustained action across several domains:

• Set Clearer, Stronger Targets: Concrete, enforceable state-level and sectoral targets for renewables, electric vehicle uptake, and energy efficiency will help align efforts nationally.
• Accelerate Grid Modernization: Investments in ‘smart grids’ that support two-way power flow, integrate distributed renewables, and ensure resilience against climate shocks are a priority.
• Unlock Investment: Public–private partnerships, new financial instruments (green bonds, blended finance), and supportive fiscal incentives will mobilize more capital for clean energy.
• Enhance Innovation Ecosystem: Scaling indigenous R&D, university-industry tie-ups, and pilot programs for new energy technologies can bridge the technology gap.
• Boost Skill Development: Training programs in clean energy, grid management, and digital skills will arm the next generation workers to drive the transition.
• Regional Collaboration: Leveraging cooperation with neighboring countries (e.g., for cross-border grid interconnection and renewable energy trade) can improve energy security and lower costs.
• Monitor and Revise: The ETI should be referenced annually by policymakers to adjust targets, fix policies, and benchmark progress transparently.

Conclusion

The Energy Transition Index 2025 provides India with a mirror to its progress and pitfalls on the road to a clean, reliable, and affordable energy future. While achievements in expanding access, building renewable capacity, and improving efficiency are commendable, persistent weaknesses in infrastructure, finance, and transition readiness must be urgently addressed. The way forward is clear: strong policies, investments in people and innovation, and relentless monitoring using tools like the ETI. For India, the global clean energy race is as much about national development, health, and security as it is about climate and rising in the ETI ranks will be both a marker and a driver of success.

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