EnergyTransition – India Emerges Stronger as Global Energy Shift Slows
EnergyTransition – Global efforts to reshape energy systems continued in 2026, but progress remained uneven across countries as several structural challenges slowed the pace of transformation.
More than half of the world’s economies registered improvements in their energy transition performance this year, according to the latest Energy Transition Index (ETI) released by the World Economic Forum. While many nations made gains in certain areas, only a limited number were able to improve simultaneously across every major performance category.
India Records Notable Progress in Energy Readiness
Among the countries showing significant advancement, India emerged as one of the strongest performers in terms of transition readiness. The report highlighted that the country achieved substantial progress through improvements in infrastructure development and workforce capabilities, strengthening its position in the evolving global energy landscape.
India moved up two places in the latest ETI rankings, supported by broader gains across its energy system. The assessment pointed to stronger infrastructure, better access and affordability, improved sustainability indicators, and increased financial support for energy-related initiatives as key contributors to its advancement.
Global Performance Shows Mixed Results
The report found that 56 percent of assessed countries improved their overall ETI scores during 2026. On average, system performance increased by 0.43 percent, largely due to improvements in sustainability measures and energy equity.
However, comprehensive progress remained limited. Only 24 percent of countries succeeded in improving across all three key dimensions of system performance, a decline from 28 percent recorded in the previous year. This suggests that while individual areas may be improving, balanced and broad-based advancement remains difficult to achieve.
Momentum Weakens Despite Earlier Gains
Although several nations recorded positive developments, the broader pace of the global energy transition showed signs of slowing. The report noted that overall ETI scores remained largely unchanged, rising by only 0.03 percent compared with the previous year.
According to the findings, improvements in system performance were offset by a decline in transition readiness, marking the first such setback in more than a decade. This trend indicates that many countries are facing challenges in maintaining the foundational conditions required for long-term energy transformation.
Geopolitical Pressures Add New Challenges
The report also identified geopolitical tensions and economic uncertainties as major factors affecting global energy progress. Disruptions in the Strait of Hormuz, alongside increasing geopolitical divisions, have exposed vulnerabilities within energy supply networks.
At the same time, rising energy demand and uneven investment patterns are creating a wider gap between leading economies and those still working to strengthen their energy systems. These developments have complicated efforts to achieve a stable and inclusive transition.
Investment Reaches Record Levels
Global energy investment reached an unprecedented USD 3.3 trillion in 2026, including approximately USD 2.3 trillion directed toward clean energy projects. Despite these record commitments, the report warned that increased spending alone has not guaranteed stronger energy security or greater transition readiness.
Researchers observed a growing disconnect between the volume of capital being deployed and the broader conditions needed to support long-term system resilience and stability.
Uneven Funding Distribution Remains a Concern
One of the key concerns identified in the report was the concentration of clean energy financing. Around 75 percent of global clean energy investments continue to flow into a small group of markets.
Meanwhile, countries expected to account for nearly 80 percent of future energy demand growth often face borrowing costs that are two to three times higher than those in advanced economies. This imbalance is making it more difficult for developing nations to accelerate their energy transitions at the required pace.
Priorities for the Next Phase
The World Economic Forum outlined three major priorities for sustaining future progress. These include strengthening energy security, affordability and resilience, accelerating grid expansion and system integration, and improving investment conditions through stable policies and targeted financial support.
While advanced economies, particularly Nordic countries, continue to lead global rankings, India’s recent gains demonstrate how strategic investments in energy security, affordability and infrastructure can support stronger long-term progress.