Geneva, Switzerland: Geopolitical tensions, supply disruptions and rising demand are driving fragmentation and slowing progress across the global energy landscape, according to the World Economic Forum’s Energy Transition Index 2026, published today.
The report, developed in collaboration with Accenture, finds that the global energy transition – defined as progress toward more sustainable, equitable and secure energy systems – has stalled despite record global investment of $3.3 trillion, including $2.3 trillion in clean energy. The research points to a growing disconnect between capital deployment and transition readiness, which declined for the first time in over a decade, suggesting that investment alone is no longer enough to sustain momentum.
The disruption in the Strait of Hormuz has intensified existing pressures identified in the Index, reinforcing the degree to which energy systems remain exposed to geopolitical shocks, with import-dependent emerging economies particularly affected. Supply risks and structural constraints are placing countries under increasing and uneven strain, with implications for affordability, resilience and long-term sustainability. Looking ahead, the response to the current crisis will help determine whether energy security and sustainability are treated as competing priorities or mutually reinforcing goals.
“The energy transition is not reversing, but it is fracturing,” said Roberto Bocca, Head of the Centre for Energy and Materials, World Economic Forum. “In a more volatile geoeconomic environment, security, affordability and resilience are central to sustaining progress. Closing the gap between ambition and delivery will require stronger foundations, including more diversified and resilient energy systems, faster infrastructure build-out, and capital that can reach markets where it is needed most.”
The Energy Transition Index (ETI) benchmarks the performance of national energy systems across three core dimensions – security, sustainability and equity – and the readiness of the enabling environment to support the transition. Overall ETI scores remained largely unchanged year-on-year, reflecting a slowdown in global momentum. Declines in energy security and transition readiness – the policy, infrastructure, investment and innovation conditions needed to sustain long-term progress – offset gains elsewhere amid tighter financing conditions and infrastructure constraints. Despite growing headwinds, 60% of countries improved their overall scores, although balanced progress is becoming more concentrated, with only one in four countries improving across all three dimensions.
“The energy transition is entering a more disruptive and challenging phase, making enterprise resilience an increasingly important priority for business leaders,” said Muqsit Ashraf, Global Lead for Industry and Enterprise at Accenture. “Organizations that use technology and AI to improve adaptability, strengthen decision-making and respond more effectively to change will be better positioned to navigate uncertainty and sustain long-term growth.”
Nordic countries continued to lead the ETI rankings, while Singapore was among the biggest climbers, rising 10 places in the Index, driven by new regulation and stronger political commitment. Advanced economies held 14 of the top 20 positions, but progress was uneven and largely stalled, with overall average scores rising by just 0.2% year-on-year. Six G20 economies ranked among the top 20: Germany (9th), France (10th), the United Kingdom (11th), China (14th), Brazil (17th) and the United States (19th). Among major economies, China continued to scale clean energy investment at record levels, India recorded one of the strongest gains in transition readiness, while the United States maintained strong energy security performance despite slipping modestly overall.
At the regional level, Sub-Saharan Africa recorded the strongest gains, while Latin America weakened amid declining transition readiness. Brazil remained a regional leader, supported by its strong energy mix. Countries in the Middle East and North Africa also saw a notable decline, as weakening policy commitment and infrastructure investment weighed on progress, though Saudi Arabia stood out with gains driven by significant financial backing and renewable deployment.
Regional divergence is shaped by structural pressures. Global electricity demand grew by 3% driven by electrification, cooling, digital infrastructure and AI, and is emerging as a defining constraint on the transition. Emerging economies account for around 80% of demand growth but continue to face higher financing costs and infrastructure gaps. Meanwhile, despite record overall investment, clean-energy capital remains highly concentrated, with around 75% flowing to a small number of economies, widening the gap between where capital is deployed and where demand is rising.
The report identifies three priorities for sustaining progress: embedding security and resilience into energy system design from the outset rather than as a response to crisis; unblocking delivery by accelerating grid expansion and system integration capacity; and restoring investability through stable policy frameworks and targeted capital flows, particularly toward the emerging economies that will drive the majority of future demand growth. Countries that act on all three will be best placed to turn today’s pressures into a durable competitive advantage in a shifting global landscape.
