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India ranked 71st in the World Economic Forum's 2025 Energy Transition Index.

About Energy Transition Index

The World Economic Forum (WEF) releases the Energy Transition Index (ETI) annually.

The ETI benchmarks 118 countries on the performance of their current energy systems, focusing on the transition to a more inclusive, sustainable, and secure global energy future.  

It provides a comprehensive framework to assess a nation's energy system and its readiness for a clean energy transition. A country's final score is a weighted average of two primary sub-indices:

• System Performance (60% weightage): This measures the current state of a country's energy system across three core dimensions:
• Equity: The accessibility and affordability of energy.
• Security: The reliability and resilience of energy supply.
• Sustainability: The environmental impact of energy production and consumption.
• Transition Readiness (40% weightage): This assesses a country's preparedness for the energy transition based on five key factors:
• Political Commitment: The presence of strong and stable policies.
• Finance and Investment: The flow of capital towards clean energy projects.
• Innovation: The development and adoption of new energy technologies.
• Infrastructure: The quality and availability of energy and digital infrastructure.
• Education and Human Capital: The skills and workforce available to support the transition.

Highlights of the Energy Transition Index (ETI) 2025

In 2025, 65% of countries improved their ETI scores, and 28% showed progress across all three core dimensions of equity, security, and sustainability.

Top Performers => European countries continue to lead the rankings. Sweden, Finland, and Denmark top the list, indicating their long-standing commitment to policy, robust infrastructure, and diverse low-carbon energy systems.

Major Economies => China has shown significant improvement, reaching a record 12th position due to its efforts in innovation and clean energy. Other major energy consumers like Brazil, the US, and Nigeria have also demonstrated advancements across multiple dimensions.

Regional Trends => Emerging Europe and Emerging Asia are making significant gains, driven by targeted reforms, better infrastructure, and increased investment in clean energy. Sub-Saharan Africa has also progressed, with Nigeria improving from 109th place in 2016 to 61st in 2025.

India's Performance

In the 2025 Energy Transition Index, India is ranked 71st, a slip from its 63rd position in the previous year.

The World Economic Forum notes that India, alongside China, has demonstrated significant improvements in energy efficiency and investment capacity.

India has shown improvements in lowering energy intensity and methane (CH4) emissions.

Global Challenges and Outlook

Rising Emissions and Demand => Despite a $2 trillion investment in clean energy in 2024, global carbon emissions reached a record 37.8 billion tons. Energy demand rose by 2.2%, driven by the increasing needs of artificial intelligence, data centers, cooling, and electrification.

Investment Imbalance => A significant disconnect exists between where energy demand is growing and where clean energy investment is flowing. Over 80% of energy demand growth since 2021 has come from emerging and developing economies, but over 90% of clean energy investment has been concentrated in advanced economies and China.

Way Forward

The WEF report stresses that the five largest economies—China, the US, the EU, Japan, and India—will collectively determine the pace and direction of the global energy transition.

For a successful and resilient transition, the report suggests several key strategies:

• A clear and consistent policy and regulatory framework is essential to attract the necessary capital and innovation for achieving a net-zero future.
• Align capital flows with the rising energy demands of emerging and developing economies.
• Diversifying energy sources, modernizing grid infrastructure, and investing in system flexibility are crucial for improving energy security.
• Increasing energy consumption from new technologies like AI and the electrification of various sectors requires careful planning and management to avoid derailing transition efforts.

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Source: 

BUSINESS-STANDARD