The Energy transition index (ETI) is an annual index released by World Economic Forum (WEF). The index ranks countries on how well they are able to balance energy security and access with environmental sustainability and affordability.
The index considers both the current state of each countries’ energy system and its ‘transition readiness’ to adapt to future energy needs.
The ‘transition readiness’ component of the index takes into account six individual indicators: capital and investment, regulation and political commitment, institutions and governance, institutions and innovative business environment, human capital and consumer participation, and energy system structure.
India’s performance in 2019 index
India ranked 76th out of 115 economies in the 2019 report (78th out of 114 economies in 2018). While India has scored low in terms of system performance (ranking 97), it ranks higher when it comes to readiness (45).
Despite its low ranking, India is the second best in the BRICS block of emerging economies. Brazil has scored 46th rank and China was ranked lowest among BRICS at 82.
Sweden was ranked 1st and is followed by Switzerland and Norway.
Small economies have achieved higher scores on readiness. The biggest challenge towards global warming is the lack of readiness to change energy mix among the world’s largest emitters.