June 2023 Fostering Effective Energy Transition 2023 Edition Foreword Roberto Bocca Muqsit Ashraf Head, Centre for Energy Global Strategy Lead, and Materials; Member of Accenture the Executive Committee, World Economic Forum The transformation of the global energy system is developing countries, demonstrate the importance well under way. In just over a decade, investments of balancing the imperatives of security, equity and across multiple forms of renewable energy have sustainability for an effective energy transition. overtaken investments in fossil fuels. Energy and climate policies now take centre stage in domestic Considering today’s context, we have updated and international affairs. The geopolitical balance the ETI framework to ensure its usefulness for of energy has shifted signi昀椀cantly, and new decision-making. The revisions include the improved superpowers have emerged in renewable energy delineation of inclusiveness and equity, the component manufacturing, critical minerals and reprioritization of energy security, the sharpening of clean technology. The frontiers of energy innovation the enabling environment scope, and the articulation have been progressively rede昀椀ned, and thousands of transition momentum to complement energy of entrepreneurs are working to remake this huge system performance and transition readiness to industry. Enabled by mounting scienti昀椀c evidence, provide an in-depth view of how fast or slow a a steady rhythm of extreme weather events country is transitioning, beyond the snapshot values. and decades of awareness campaigns, climate consciousness is embedded in the public psyche. The actions taken in the early years of this decade of The Energy Transition Index (ETI) has supported delivery will be critical in ensuring that strong, long- decision-makers through this period, with a robust, term ambition is supported by immediate progress. consistent and comprehensive framework and a The focus needs to be on enhancing an equitable transparent fact base. transition which has been traded off rather than enabled by the focus on security and sustainability. Despite the strong momentum, the energy transition The energy transition must be made resilient to has been challenged by near-term exigencies. maintain speed under current volatilities and during Following the COVID-19 pandemic, a combination of potential future domestic or international disruptions. economic factors and supply chain constraints led Resilience needs to be built into the transition to to affordability challenges, shortages and blackouts maintain progress throughout ongoing and future in different parts of the world. The recent energy disruptions as COVID-19 and the energy crisis will crisis, a result of the Russia-Ukraine war, is the most not be the only international events in the coming severe in decades, leading to the highest levels decade and beyond. of in昀氀ation in decades, a cost-of-living crisis and macroeconomic instabilities. While investments and Through this effort, the World Economic Forum policy measures for energy transition have ampli昀椀ed encourages the sharing of best practices and despite the volatile environment, the delicate the use of its platform for effective public-private balance of the energy security architecture, and collaboration to facilitate the energy transition the adverse effects on vulnerable households and process around the world. Fostering Effective Energy Transition: 2023 Edition 3