Overview

The Energy Transition Index (ETI) is a comprehensive benchmark series produced by the World Economic Forum in collaboration with Accenture. Now in its sixteenth year, the report provides a holistic framework for assessing the energy systems of 120 countries, tracking their progress towards a more secure, sustainable, and affordable energy future. The 2026 edition covers a global landscape increasingly shaped by geopolitical tensions, trade fragmentation, and surging energy demand, providing a detailed analysis of how these external pressures impact the pace and direction of the transition. The report evaluates 44 indicators across two primary sub-indices: current system performance and future transition readiness.

Purpose

The ETI exists to provide a consistent, evidence-based view of how global energy systems are performing and how prepared they are for future challenges. It is designed to inform the decisions of government and business leaders by identifying where the gaps between climate ambition and actual delivery are widening. By offering a stable analytical lens, the benchmark helps stakeholders distinguish between long-term structural trends and short-term market volatility. This information is critical for prioritising actions that strengthen system foundations, such as infrastructure expansion, regulatory stability, and the mobilisation of capital to underserved high-growth economies.

Methodology

The assessment is carried out using a weighted composite of two sub-indices: system performance (60%) and transition readiness (40%). System performance is measured through three equally weighted dimensions: security (grid reliability, supply adequacy, and resilience), equity (energy access, affordability, and economic development), and sustainability (energy efficiency, emissions intensity, and clean energy share). Transition readiness evaluates the enabling environment through five factors: regulation and political commitment, finance and investment, innovation, infrastructure, and education and human capital. Data is sourced from credible international organisations, including the International Energy Agency (IEA), the World Bank, and the International Monetary Fund (IMF). The 2026 methodology was further strengthened by adding two new indicators: “AI readiness” and “clean technology minerals supply chain exposure,” reflecting the growing importance of digital capabilities and strategic resources.

Use for finance professionals

Finance professionals can use the ETI to evaluate country-level investment risks and the bankability of energy projects within different national contexts. The index highlights critical disparities in the cost of capital, noting that emerging economies often face financing costs two to three times higher than advanced markets despite driving the majority of future demand. By analysing the “Finance and investment” and “Regulation and political commitment” scores, investors can identify markets with the stable policy frameworks and credible delivery pathways necessary to attract long-term capital. The report’s focus on infrastructure bottlenecks, such as the 2,500 GW of projects awaiting grid connections globally, assists asset managers in identifying systemic risks that may delay project returns. Furthermore, the analysis of critical mineral supply chains and the impact of AI-driven electricity demand provides essential data for strategic asset allocation and risk management in transition-related portfolios.