Page 26 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Lessons from Economics

Energy Transition Index (ETI)

The World Economic Forum (WEF) developed the comprehensive Energy Transition Index in 2018 to
measure national energy transition progress. The Index benchmarks 115 countries based on their
current energy system performance and preparedness for the ongoing transition. This is quantified by
39 indicators used to score countries on a scale of 0 to 100, with the indicators split into two categories:
system performance imperatives and transition readiness.

System Performance Imperatives

The “System Performance Imperatives” review how well a country’s current energy system is
performing across three main—equally weighted categories. An effective energy transition, and energy
system, is balanced between the three categories.

1. The ability to support economic development and growth

2. Universal access to a secure and reliable energy supply

3. Environmental sustainability across the energy value chain

Transition Readiness for Mature Energy Systems

“Transition Readiness” looks at the environment in the country and if it is promoting and ready for
renewable energy systems. As a result, this often takes the form of a stable business environment,
favorable policy, or incentives for innovation. It consists of six categories:

1. Capital and investment

2. Regulation and political commitment

3. Institutions and governance

4. Infrastructure and innovative business environment

5. Human capital and consumer participation

6. Energy system structure

The ETI aims to balance the "energy triangle" of security, equity, and sustainability. As of 2025, the index
showed that clean energy investment has grown (over $2 trillion in 2024), but that progress is uneven,
with advanced economies continuing to lead in readiness and sustainability

? Top Performers: Nordic countries consistently dominate the top positions, with Sweden often
ranked 1st, followed by Finland, Denmark, and Norway.

? India's Position: In the 2025 report, India ranked 71st out of 118 countries, with a score of 53.3.
India has made progress in lowering energy intensity and CH4 emissions, favourable energy
regulations and increasing clean energy investments. India needs improvement in grid
reliability, energy access for rural areas and further reducing dependence on imported energy.

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