A new report conducted by the World Economic Forum and Mckinsey & Company ranks efforts by global countries to foster energy transition.
The report ‘Fostering effective energy transition’ finds Nordic countries to be leaders in the energy transition, with efforts to achieve goals set under the Paris Climate Change Agreement being the main driving force.
Sweden followed by Norway and Switzerland are champions. Sweden scored 75.8% owing to factors including not having fossil fuel reserves, the introduction of the 1991 carbon tax, and for generating 50% of total energy from renewables in 2014
Fields explored in ranking the countries include the country’s:
- Capital and investment
- Regulation and political commitment
- Institutions and governance
- Energy system structure
- Human capital
- Infrastructure and innovative business environment
- Economic development and growth
- Security and access and environmental sustainability
Norway, Sweden and the Czech Republic have been ranked leaders for balancing economic development, growth, environmental sustainability, security and accessibility.
Finland and Denmark have been ranked leaders for laying adequate foundations for the energy transition. The foundations include human capital and consumer participation, as well as energy system structure.
European countries accounted for the entire top 10 and 15 of the top 20 countries in the index.
Despite the positive developments, Europe is home to countries with the largest energy consumers and carbon emitters.
To improve its ranking in energy sustainability, the report recommends Europe to:
- accelerate phase-out subsidies for high-emission energy sources, integrated and more efficient heating,
- introduce more policies and standards prioritising zero-emission buildings by 2030, and
- open access data to foster new energy business models.