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Friday, July 4, 2025
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Philippines climbs to 76th in energy transition index

The Philippines climbed six places to rank 76th out of 118 countries in the World Economic Forum’s (WEF) energy transition index, a report showed Wednesday.

The “Fostering Effective Energy Transition 2025” report, developed by WEF in collaboration with Accenture, benchmarks the performance of energy systems across three dimensions – security, sustainability and equity – and five readiness factors: political commitment, finance and investment, innovation, infrastructure and education and human capital.

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In 2025, 65 percent of countries improved their energy transition index scores, with 28 percent advancing across all three core dimensions, the report said.

The Philippines had an ETI score of 53.0, trailing other Southeast Asian nations such as Cambodia (73rd), Indonesia (58th), Singapore (52nd), Thailand (51st), Vietnam (49th) and Malaysia (47th).

Sweden, Finland and Denmark topped the index, reflecting their “long-standing policy commitment, robust infrastructure and diversified low-carbon energy systems,” the report said. Norway and Switzerland rounded out the top five.

Austria, Latvia and the Netherlands followed closely, with strong performances in equity, clean energy capital flows and renewable energy capacity buildout. Germany and Portugal completed the top 10.

Among the top 20, China reached a record 12th place, “fueled by its scale and leadership in innovation and clean energy investment.” Brazil ranked 15th, leading Latin America with “greater energy diversification, lower prices and rising clean energy use.” The United Kingdom placed 16th, while the US rose to 17th overall and ranked first in energy security.

India advanced on energy efficiency and investment capacity, while the United Arab Emirates recorded the strongest year-on-year gain in a decade, driven by rapid infrastructure upgrades, targeted subsidy reforms, rising clean energy use and lower energy intensity.

The WEF warned that rising geopolitical tensions, investment gaps and a “growing disconnect between clean energy innovation and deployment where it is needed most” threaten to undermine momentum.

While advanced economies grapple with grid congestion, high prices and delivery bottlenecks, regions like Emerging Europe and Emerging Asia are making gains, driven by targeted reforms, improved infrastructure and growing clean energy investment.

“Energy systems are evolving at varying speeds,” said Roberto Bocca, head of the Centre for Energy and Materials at the World Economic Forum.

“We are seeing more holistic approaches and visible progress. It is encouraging that 28 percent of countries, including major energy consumers and producers like Brazil, China, the US and Nigeria, have advanced across multiple dimensions. Staying on track demands urgent investment in fast-growing emerging economies,” said Bocca.

The 2025 energy transition index recorded a 1.1-percent year-on-year gain – the fastest since pre-COVID levels. Equity showed the strongest gains, aided by stable energy prices and subsidy cuts, while sustainability improved thanks to increased renewable energy adoption and improvements in energy efficiency.

Energy security stagnated due to inflexible power systems, import reliance and limited diversification. Despite $2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tons in the hottest year on record, as energy demand rose 2.2 percent driven by artificial intelligence (AI), data centers, cooling and electrification.

“AI is the most transformative technology of our lifetimes and the single greatest lever of a more intelligent, adaptive and resilient energy future,” said Muqsit Ashraf, group chief executive for Accenture Strategy.

“Leading companies are harnessing technology, data and AI to accelerate their reinvention and placing people at the core of that change – ultimately becoming more resilient and delivering long-term profitable growth,” he said.

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