he World Economic Forum’s Fostering Effective Energy Transition 2024 report reveals a mixed picture of the global energy transition. While investments in renewable energy are soaring, the momentum towards a fully sustainable energy future has slowed due to rising energy costs and geopolitical tensions, which have tested energy security and equity worldwide.

According to the report, a record-breaking $1.8 trillion was invested in the global energy transition last year, with a 50% increase in renewable energy capacity compared to 2022. However, these gains are being tempered by economic and political obstacles that risk stalling progress.

Energy Transition Index (ETI) Findings

The Energy Transition Index (ETI), which benchmarks 120 countries based on their energy system performance and readiness for the energy transition, highlights both advancements and challenges. The report finds notable improvements in energy efficiency and the rapid adoption of clean energy sources, but it also stresses that rising energy prices are threatening energy equity — the fair distribution of affordable, clean energy. The increasing cost of energy has disproportionately impacted vulnerable populations, making energy affordability a growing concern in many regions.

Moreover, energy security remains under pressure due to geopolitical risks, such as conflicts, trade disruptions, and shifting alliances, which have destabilized global energy supplies. The uncertainty around energy security is now a critical hurdle that could slow the transition towards a more sustainable and resilient energy system.

The Road Ahead

Despite these challenges, the world’s commitment to transitioning to renewable energy remains strong, with clean energy investments expected to grow further. However, addressing energy equity and ensuring secure access to energy amid geopolitical uncertainty will be key to sustaining progress.

As global leaders prepare to gather for the Sustainable Development Impact Meetings in New York from September 23-27, energy transition will be one of the central topics of discussion, alongside broader goals such as climate action, economic growth, and reducing inequalities.