Why is it in the news?
- The “Fostering effective energy transition 2024” report is grounded in the Energy Transition Index (ETI), which assesses 120 countries based on their energy system performance and readiness for secure, sustainable, and inclusive energy systems.
| Energy transition (ET) signifies the shift from fossil fuels to renewable energy sources aimed at reducing CO2 emissions. |
Key Insights from the Report
- Investment Trends: Clean energy infrastructure investments totaled $1.8 trillion in 2023, with a notable 90% of growth since 2021 observed in advanced economies and China.
- Top Performers: Leading performers include Sweden, Denmark, Finland, Switzerland, and France. Among the top 20 performers globally are six G20 countries, namely France, Germany, Brazil, China, the UK, and the USA. India is positioned 63rd on the ETI.
- Net-Zero Emissions: Eight countries achieved net-zero emissions in 2022, including Bhutan, Comoros, Gabon, Guyana, Madagascar, Niue, Panama, and Suriname.
- Digital Innovations: Generative AI could potentially aid energy companies in saving over $500 billion annually.
Challenges in Energy Transition
- Lack of incentives for private sector investments in clean electricity.
- Merely 6% of G20 recovery funding is allocated towards clean energy.
- Continued subsidies for fossil fuels.
- Some advanced economies and major energy companies are retracting crucial energy transition commitments.
Initiatives in Energy Transition
- Global Renewables and Energy Efficiency Pledge: Signed by 133 countries, aiming to triple the rate of renewables capacity by 2030.
- Technology Gap Addressing Initiatives: Pursuits of the G20 to bridge technology gaps for energy transitions.
- Just Energy Transition Partnerships: Launched in 2022 by the International Energy Agency and World Economic Forum (WEF) to support developing countries in transitioning to clean energy.
- Carbon Border Adjustment Mechanism (CBAM): Introduced by the EU in 2023.
