Global energy transition progress falters as security and investment pressures mount
Sweden leads the 2026 Energy Transition Index rankings for the third consecutive year, with Nordic and European economies occupying most of the top 20 positions
KAMPALA, September 16, 2026 — Global progress on energy transition is becoming increasingly uneven, with only 24 percent of countries improving simultaneously on energy security, affordability and sustainability, according to the 2026 Energy Transition Index [ETI] report by the World Economic Forum [WEF].
The report, published in June 2026, says the enabling conditions needed to sustain future energy transition progress – including policy, finance, innovation and infrastructure – weakened for the first time in more than a decade.
Despite continued growth in clean energy investment and generation, the report says the transition is facing mounting structural constraints, including grid congestion, permitting delays, concentration of capital and chronic underinvestment in emerging economies.
Global energy investment reached US$ 3.3 trillion in 2025, while renewables and nuclear power accounted for 42 percent of electricity generation. Renewable energy capacity also increased by nearly 800 gigawatts [GW].
However, the report says these gains are being undermined by growing external pressures. By late 2025 and early 2026, trade restrictions affected US$ 2.6 trillion of global commerce, while export controls covered more than half of critical transition minerals.
The report says the simultaneous weakening of finance, regulation and innovation points to a broader deterioration in countries’ readiness to manage the energy transition.
The 2026 disruption to energy flows through the Strait of Hormuz further exposed vulnerabilities in global energy systems, triggering one of the most acute energy price shocks since 2022 and forcing import-dependent emerging economies to make difficult choices between energy access, affordability and investment in the transition.
According to the WEF, the disruption highlighted a broader change in the meaning of energy security, which now extends beyond fuel supplies to include electricity grids, critical minerals, infrastructure, reliability and resilience.
“Security was the only system performance dimension to decline,” the report says, recording a 0.9 percent fall, driven by weaker reliability and supply conditions.
The decline in security had begun before the Strait of Hormuz disruption, according to the report, which says the subsequent shock demonstrated how quickly improvements in affordability can be reversed.
At the same time, global energy demand is rising rapidly, driven by electrification, cooling, digital infrastructure, artificial intelligence [AI]-enabled data centres and economic growth.
The report says energy systems are increasingly required to provide more energy, more reliably and with lower emissions, even as existing systems face mounting pressure.
Sustainability continued to improve, although at a slower pace, with energy efficiency improving in 92 economies.
Finance remains a major constraint
The ETI says transition readiness deteriorated in 2026, with finance and investment recording the largest decline at 1.8 percent.
The report says the main challenge is not the overall volume of capital available, but the conditions determining where investment goes and the cost at which it is provided.
It says 75 percent of clean energy investment continues to flow to a small number of economies, while countries expected to account for 80 percent of future electricity demand growth face financing costs two to three times higher.
“Record deployment alone cannot compensate when policy, finance, innovation and infrastructure weaken together,” the report says.
Regulation and political commitment declined by 1.2 percent as policy uncertainty increased and policy ambition outpaced implementation.
Innovation also weakened, falling 1.1 percent, amid slower diffusion of technologies including carbon capture, hydrogen and long-duration energy storage.
The resulting infrastructure constraints are increasingly evident, with more than 2,500 GW of energy projects awaiting grid connections worldwide.
Sweden retains top position
Sweden leads the 2026 Energy Transition Index rankings for the third consecutive year, with Nordic and European economies occupying most of the top 20 positions.
China, Brazil, the United States, Germany and France also feature among the leading countries, highlighting the report’s assessment that countries with significant influence on the energy transition span different regions and income levels.
The report identifies three priorities for maintaining progress: strengthening energy security, affordability and resilience; expanding infrastructure to unblock project delivery; and increasing investability through stable policy, credible regulation and improved risk-sharing.
The WEF says the opportunity to strengthen the foundations of the energy transition remains, but the window is narrowing.
It says the growing gap between countries that are strengthening these foundations and those that are not is already becoming visible in the data.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
