Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
From UPSC perspective, the following things are important:
Prelims level: Global Energy Transition Index
Mains level: Move towards clean energy
- India has moved up two places to rank 76th on a global energy transition index, released by World Economic Forum (WEF).
Global Energy Transition Index
- The WEF has ranked 115 economies on how well they are able to balance energy security and access with environmental sustainability and affordability.
- The WEF index considers both the current state of the countries’ energy system and their structural readiness to adapt to future energy needs.
- The ‘transition readiness’ component of the index has taken 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 is amongst the countries with high pollution levels and has a relatively high CO2 intensity in its energy system.
- India has made significant strides to improve energy access in recent years, and currently scores well in the area of regulation and political commitment towards energy transition.
- It suggested there was a ground for optimism regarding India despite the current outdated energy system not being ready for transition, because an enabling environment is being built to support future transition.
- While India has scored low in terms of system performance (ranking 97 and 86, respectively), it ranks considerably higher when it comes to readiness (45 and 61, respectively).
- Overall, India has moved up two places from 78th last year.
- China is ranked even lower than India at 82nd position, though it ranks very high at seventh place in the world for regulation and political commitment.
- Despite its low ranking, India is the second best in the BRICS block of emerging economies, with Brazil being the best at 46th place globally.
- However, India is the only amongst the five economies to improve its rank since last year.
- Sweden remains on the top on this annual list and is followed by Switzerland and Norway in the top three.
- Among major economies, the United Kingdom (UK) is ranked seventh.
- Singapore has been ranked thirteenth, while Germany, Japan and the US have bagged the seventeenth, eighteenth and the twenty-seventh place respectively.
- Within Asia, Malaysia is ranked highest at 31st, Sri Lanka is 60th, Bangladesh 90th and Nepal 93rd.
- The biggest challenge facing attempts to future proof global energy is the lack of readiness among the world’s largest emitters.
- Continued uses of coal for power generation in Asia, increasing commodity prices and slower-than-needed improvements in energy intensity have contributed to this year’s stagnation in performance.
- The WEF said fossil fuels’ share of total primary energy supply at 81 per cent has been constant over the past three decades.
- Also, the global CO2 emissions are expected to have increased by more than 2 per cent in 2018, the highest since 2014.