World Economic Forum: Driving Effective Transformation of Energy Systems 2020 Report

The report comprehensively considers the current performance of the energy systems of 115 economies around the world through the Energy Transition Index 2020 (ETI, as shown in the table), which includes analysis of three major indicators: economic development and growth, environmental sustainability, and energy security, and also refers to indicators such as the readiness level of safe, reliable, sustainable, affordable and inclusive energy system transformation. The report shows that 94 economies have made some progress since 2015, but the environmental sustainability of the energy system is still lagging behind.

Among them, Sweden, which ranks first, has led the Energy Transition Index for three consecutive years, followed by Switzerland and Finland. Among the G20 economies, only the United Kingdom and France are in the top ten. The two countries have taken some common measures to promote energy transformation, such as limiting energy subsidies, reducing dependence on imported energy (to improve energy security), reducing energy intensity (energy consumption per unit of GDP), and abiding by political commitments to actively promote energy transformation and achieve climate change goals. Germany, ranked 20th, is still committed to phasing out coal and achieving the goal of decarbonizing industrial production through clean hydrogen, but the high cost of energy services poses severe challenges.

Emerging energy-demanding countries such as India (74th) and China (78th) have been working hard to improve the environment and promote energy transformation. Specific measures include political commitment, consumer participation and investment, technological innovation and infrastructure.

In China, for example, air pollution has prompted the government to introduce a number of energy policies to control carbon emissions, promote the electrification of transportation, and build the world's largest solar photovoltaic and onshore wind power stations. India's energy transition has benefited mainly from the government-led renewable energy expansion plan, which will be expanded to 275 GW by 2027. In addition, India has significantly improved energy efficiency by purchasing a large number of LED bulbs and smart meters and promoting energy efficiency standards and labeling programs for home appliances. India is also actively testing other energy measures to significantly reduce the production cost of electric vehicles.

The analysis results of the "Energy Transformation Index 2020" show that 75% of countries have implemented a comprehensive and incremental approach, including pricing carbon emissions, retiring coal-fired power plants early, and redesigning electricity markets to integrate renewable energy, making some progress in improving environmental sustainability. However, the global average score in this dimension is still at the lowest level among the three assessment categories.

The agency analyzed that the COVID-19 pandemic has forced all industries to take quick action to respond to operational disruptions, changes in demand and new ways of working. At the same time, governments have also launched economic recovery packages to help mitigate the negative impact of the pandemic on businesses. When implementing specific policies, governments of various countries should focus on improving energy transition policies, increasing investment, establishing an inclusive and sustainable energy system, and promoting a rapid transition to clean energy.

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