An opportunity also lies in the cost effectiveness Renewable energy deployment has grown of implementing clean solutions in emerging exponentially, though innovation in next- economies, as the average cost of reducing generation energy technologies is necessary. emissions in these economies is estimated to be approximately half of that in advanced economies. Despite the fastest growth among the three All of this, however, must be accompanied by dimensions of the energy triangle, the global improving the energy intensity of the economy, while average score on the sustainable dimension lags reducing the carbon intensity of the energy mix. the scores of the equitable and secure dimensions Further, directing investments towards developing on an absolute scale throughout the past decade. economies can help them boost acceleration. The silver lining, however, came in 2022 with investments in renewables reaching a record high of No one-size-昀椀ts-all dimensions exist for $1.3 trillion, a 19% increase from 2021 investment all countries. levels and a 70% increase from pre-pandemic levels in 2019. Around the globe, countries have The countries performing strongly on the added to their renewable capacities. One reason equitable dimension have been able to manage for this is the wide availability and maturity of affordability concerns due to less reliance on renewable technologies. To increase the supply energy imports and cost re昀氀ective energy pricing. of clean energy and its associated technologies, Oman, Canada, United States and Sweden are the innovation landscape of clean energy solutions top scorers on this dimension. Chronic energy must be boosted, including alternative fuels, access challenges are re昀氀ected in the low scores hydrogen, and carbon capture and sequestration. of Democratic Republic of Congo, Zambia, Tanzania and Senegal on this dimension. The Policies are paving the way for a progressive top scorers in the secure dimension are mainly transition, and diligence with implementation advanced economies, such as United States, would shape up the transition trajectory. Australia and Estonia, followed by Malaysia, a developing country. All these countries have a With updated country commitments, global highly diversi昀椀ed energy mix, minimal dependence greenhouse gas emissions coverage increased on fuel imports and minimal interruptions in energy from 69% to 77%. A combination of recent policies, supply. The countries scoring the lowest are such as the US In昀氀ation Reduction Act, Japan’s Lebanon, Jamaica and Dominican Republic, Green Transformation programme, the European mainly because of challenges on the diversity of Union’s Carbon Border Adjustment Mechanism, and the energy mix, the need for energy imports and evolving mandatory and voluntary carbon markets, electricity losses. Latin America leads the chart are accelerating clean energy supply and technology on the sustainable dimension with Costa Rica, scalability, and promoting demand ef昀椀ciency Paraguay and Uruguay, on account of abundant while allowing for transition-oriented economic hydroelectric potential. Fossil fuel exporting growth. The transition trajectory hinges on the countries Bahrain, Kuwait, Oman and Qatar quality of implementing these policies to stimulate score the lowest on this dimension, attributed to investments in enabling the transition infrastructure, high energy and carbon intensities and a very low while avoiding unintended consequences on energy share of clean energy in the mix. These results equity and global trade. Increasing 昀椀nancing for infer that, irrespective of economic development, a low-carbon energy system requires concerted countries can harness different available resources efforts from governments, emphasizing a strong to successfully transition on various aspects of the policy and price to ensure green investments offer energy triangle. an attractive risk-adjusted return. Fostering Effective Energy Transition: 2023 Edition 5