Change is Rarely Easy - A Just Energy Transition
Introduction
The global energy transition is no longer a future ambition—it’s an urgent necessity. Despite encouraging progress, we’re still far from where we need to be. In 2023, $1.8 trillion was invested globally, yet we need $4.5 trillion annually through 2030 to stay on track for net-zero.
Without faster and fairer investment in clean energy, we risk deepening climate change, economic instability, and social inequality. A Just Energy Transition—one that prioritizes equity and inclusivity—is key to a more resilient, sustainable future.
Why ‘Just’ Matters
Neglecting the transition locks us into high-emission infrastructure and heightens risks like extreme weather, job displacement, and social unrest. But done right, it can unlock cost savings, innovation, green jobs, and stronger, more inclusive economies.
The urgency is clear. Decision-makers must act—boldly and together.
Yet, while “energy transition” dominates headlines, the concept of a Just Energy Transition remains sidelined. Consider this:
90% of global clean energy investment is concentrated in China and advanced economies (WEF).
Meanwhile, many other nations are losing momentum in transition readiness.
It’s as if we’re all in the same race, but only some have trained for it—others are falling behind, and the track isn’t level.
What is Energy Transition Readiness?
So, how do we measure how each country is doing in preparing for the transition?
This is where the Energy Transition Index (ETI) comes in; a benchmarking tool developed by the World Economic Forum (WEF). It assesses how well countries are performing in transitioning to secure, sustainable, affordable, and inclusive energy systems.
To add some flesh to the bones… Energy transition readiness refers to a country’s, company’s, or system’s ability to shift from fossil fuel–based energy sources to clean, sustainable, and low-carbon energy systems. And the ETI itself assesses how well each country is performing the transition to secure, sustainable, affordable, and inclusive energy systems.
It includes the foundational conditions and enabling factors that determine how effectively this shift can happen. Key enabling factors of of effective readiness include:
1️⃣ Regulation and Political Commitment
2️⃣ Finance and Investment
3️⃣ Education and Human Capital
4️⃣ Infrastructure
5️⃣ Innovation
Source: WEF
These five enabling factors collectively shape a country’s ability to steer its energy transition effectively. And, determine the extent to which an energy system is likely to be equitable, secure and sustainable.
Mini Glossary:
▶️ Equitable - the extent to which the in-country energy system able to offer affordable access to clean and modern forms of energy
▶️ Security - the extent to which the energy supply reliable and resilient
▶️ Sustainable-ness - the extent to which that energy system is efficient, and how much progress has been made towards decarbonizing it, or using clean energy instead
A review of these factors leads to an ETI score which gives an indication of how well each country is managing it’s energy transition. Unsurprisingly given the amount of investment in advanced economies in Europe, the Nordics'; Sweden, Denmark, Finland and Norway are ranked at the top for readiness, alongside Switzerland, France and Iceland, Austria, Estonia and the Netherlands. In total, these top 10 countries account for only 1% of energy related CO2 emissions, yet account for 2% of the global populations. An achievement.
Whilst each country has been on their own energy transition journey, there are some similarities across those that are successfully transitioning. They have:
– Enhanced energy security through a diverse energy and electricity mix, as well as a mix of import partners,
– Improved energy and carbon intensity,
– Increased share of clean energy in the fuel mix,
– Developed a carbon pricing mechanism, and have a
– Strong and supportive regulatory environment to drive the transition
Conclusion
A truly sustainable energy future cannot be achieved without justice and inclusivity at its core. As the world progresses toward decarbonization, the principles of equity, access, and fairness must guide every investment, policy, and innovation.
The gap in energy transition readiness—especially across emerging economies—highlights a stark reality: we are not all transitioning at the same pace, nor with the same support.
To bridge this divide, we must implement bold, localized strategies and elevate global collaboration. The Just Energy Transition is more than a climate solution—it’s a blueprint for shared prosperity, resilience, and long-term human and planetary well-being.
Look out for the follow-up article exploring this in more depth: 🔗10 Actionable Strategies to Enable a Just Transition for guidance on actions that can be taken to ensure a Just Transition.
