Geopolitical tensions, supply disruptions and rising demand are contributing to fragmentation in the global energy transition and slowing progress, according to the World Economic Forum’s Energy Transition Index 2026, published on 18 June.
The report, developed with Accenture, says global momentum has stalled despite record investment of $3.3 trillion in 2025, including $2.3 trillion in clean energy. It finds a widening gap between capital deployment and “transition readiness” — the policy, infrastructure, investment and innovation conditions needed to sustain long-term progress — which the Index says declined for the first time in more than a decade.
The World Economic Forum points to recent disruption in the Strait of Hormuz as an example of how geopolitical shocks can expose vulnerabilities in energy systems, particularly for import-dependent emerging economies. It says supply risks and structural constraints are creating uneven pressures with implications for affordability, resilience and long-term sustainability.
“The energy transition is not reversing, but it is fracturing,” said Roberto Bocca, Head of the Centre for Energy and Materials at the World Economic Forum. “In a more volatile geoeconomic environment, security, affordability and resilience are central to sustaining progress.”
The Energy Transition Index benchmarks national energy systems across security, sustainability and equity, and assesses the enabling environment supporting the transition. The report says overall scores were largely unchanged year-on-year. It attributes this to declines in energy security and transition readiness offsetting gains elsewhere, citing tighter financing conditions and infrastructure constraints. While 60% of countries improved their overall scores, the report says progress is becoming more concentrated, with only one in four countries improving across all three dimensions.
Accenture’s Global Lead for Industry and Enterprise, Muqsit Ashraf, said the transition is entering a more disruptive phase, arguing that enterprise resilience is becoming a higher priority for business leaders. “Organizations that use technology and AI to improve adaptability, strengthen decision-making and respond more effectively to change will be better positioned to navigate uncertainty and sustain long-term growth,” he said.
Regionally, the report says Nordic countries continue to lead the rankings, while Singapore rose 10 places, which it attributes to new regulation and stronger political commitment. Advanced economies held 14 of the top 20 positions, but the report says their progress was uneven, with average scores increasing by 0.2% year-on-year. It lists six G20 economies in the top 20: Germany (9th), France (10th), the United Kingdom (11th), China (14th), Brazil (17th) and the United States (19th).
The report says Sub-Saharan Africa recorded the strongest regional gains, while Latin America weakened due to declining transition readiness. It also reports a decline across the Middle East and North Africa, which it links to weaker policy commitment and infrastructure investment, while noting gains in Saudi Arabia driven by financial backing and renewable deployment.
The Index highlights rising electricity demand as a growing constraint. It reports global electricity demand grew by 3%, driven by electrification, cooling, digital infrastructure and AI. Emerging economies account for around 80% of demand growth, it says, but face higher financing costs and infrastructure gaps.
Despite record overall investment, the report says clean-energy capital remains concentrated, with around 75% flowing to a small number of economies, widening the gap between where capital is deployed and where demand is rising.
The report outlines three priorities: building security and resilience into energy system design; accelerating grid expansion and system integration; and restoring “investability” through stable policy frameworks and targeted capital flows, particularly towards emerging economies.
