Global Energy Transition Index

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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


News

  • 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

  1. The WEF has ranked 115 economies on how well they are able to balance energy security and access with environmental sustainability and affordability.
  2. The WEF index considers both the current state of the countries’ energy system and their structural readiness to adapt to future energy needs.
  3. 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’s Performance

  • 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  • It suggested there was a ground for optimism regarding India despite the current outdated energy system not being ready for transition, because an enabling environment is being built to support future transition.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.

Global Scenario

  • 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.

Challenges ahead

  • 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.
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