energy sector. Globally since 2014, the score for Equitable the equitable dimension has seen a 4% increase, with a recent 3% increase from 2021 to 2022 and The imperative of the equitable energy transition a 4% decline from 2022-2023 following market stems from the critical role played by the energy signals, as shown in Figure 8. Oman, Canada, the sector in driving socio-economic growth. While United States and Sweden are leading in 2023, the energy transition has the potential to create while countries in Sub-Saharan Africa, including economic opportunities, it could bring high costs the Democratic Republic of Congo, Zambia, and inequalities if not managed properly, particularly Tanzania and Senegal, rank in the lowest quartile. for the world’s most vulnerable populations. While global average scores on energy access This requires leaders to make dif昀椀cult choices, and economic development have seen gains particularly in emerging and developing economies, since 2014, those for energy affordability have to support economic growth that maximizes social substantially declined (5%), owing to the ongoing welfare while ensuring access to abundant and energy crisis and unprecedented shock to energy diverse forms of energy at affordable prices. prices and household expenditures. These trends, however, vary by country depending on the stage The ETI’s equitable dimension tracks the access, of economic development. affordability and economic development of the FIGURE 8 ETI equitable dimension trend, 2014-2023 68 66 63.0 60.9 61.3 61.7 64 62 65.8 e 64.2 63.9 63.9 63.5 60 63.3 Index scor58 56 54 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: World Economic Forum Global demand and prices for electricity and oil Estimates suggest that around 75 million people surpassed pre-pandemic levels in 2021 because of who gained access to electricity recently will likely the strong correlation between economic growth lose the ability to pay for it, and 100 million people and energy consumption. Natural gas prices also may go back to using traditional biomass for climbed to their highest in a decade in Europe, the cooking.8 ETI trends show that while the rate of United States and major Asian markets, owing to a access to electricity in rural areas as well as access combination of demand- and supply-side factors. to clean cooking fuels has slowed in the past three These imbalances carried over to 2022 with energy years, electricity prices remain high across several prices sustaining record-high levels due to the Russia- regions, including advanced economies, emerging Ukraine war. As the global energy crisis persists, the and developing Europe, and the Middle East, surge in energy prices continues to fuel in昀氀ationary North Africa and Pakistan. This implies a different pressures that deter investments in countries already set of affordability challenges, however, than those dealing with high interest rates and greater volatility. in Sub-Saharan Africa. To alleviate the effects of As a result, energy access investments dwindle while high electricity prices, many countries introduced affordability of energy services also becomes severely legislation and measures such as the regulation constrained, adding to concerns of the equity and of wholesale and retail prices; revenue caps on justice of the energy transition. renewables, nuclear and coal plants; reductions in Fostering Effective Energy Transition: 2023 Edition 21