Bangladesh has moved up two notches in the Energy Transition Index

Bangladesh ranks 109th in the Global Energy Transition Index (ETI) 2024, which assesses the performance of 120 countries on their current energy systems and transition readiness.

According to a report titled “Supporting an efficient energy transition” published on June 19 by the Geneva-based World Economic Forum (WEF), the country climbed slightly up from 111th place in last year’s index thanks to an improvement in its System Performance score.

We must ensure the possibility of competition in the energy sector to ensure that demand is met by supply.

Energy expert Dr. Mohammad Tamim

Energy system performance measures countries’ current energy systems, with a focus on balancing equity, environmental sustainability and energy security.

In this category, Bangladesh scored 60.8, which is higher than last year’s score of 59.8.

Transition readiness is divided into two groups: core enablers and enablers. The most important factors include regulation and political involvement, as well as finance and investment. Enabling factors include innovation, infrastructure, education and human capital.

The country’s score in this category dropped to 25.6 from last year’s 26.1.

A country’s final ETI score is the sum of its scores on two sub-indicators: system performance and transition readiness, weighted 60% and 40% respectively, on a scoring scale of 0-100, with a score of 100 representing the highest global performance on each indicator.

Energy expert Dr Mohammad Tamim told The Business Standard: “The country cannot be ready to transition to renewables unless adequate competition and investment are supported. Therefore, policy-making parameters must be adjusted in line with energy transition readiness.”

“We need to ensure that there is competition in the energy sector so that demand can be met by supply,” he added.

India leads the South Asian group

India ranks first among South Asian countries at 63rd due to its significantly higher transition readiness score, followed by Sri Lanka at 69th, Nepal at 100th and Bangladesh.

Pakistan took the lowest position in the region – 113th.

Bangladesh scored the lowest in the region for transition readiness, but improved its system performance score compared to last year’s index, now only lower than Sri Lanka and India.

The world’s best performers

Sweden, Denmark, Finland and Switzerland top the rankings, while France was among the top five best performing countries due to its effective energy efficiency policies, resulting in a 12% reduction in energy intensity in 2022 compared to 2021

Meanwhile, Estonia, Ethiopia and Lebanon have seen the fastest improvement over the past five years, prioritizing off-grid renewable energy to increase access and sustainability.

Challenges

Global average Energy Transition Index (ETI) scores have reached their highest levels, with 107 of 120 countries making progress over the past decade. However, the pace of the energy transition has been slowed by the deterioration of equity in the energy sector due to rising energy prices in recent years, while energy security continues to be challenged by geopolitical tensions.

“In the last decade, the sustainability dimension of energy systems has improved with the shift to renewable energy sources and the mainstreaming of electric vehicles. However, progress is uneven around the world,” the report says.

In addition to the increased use of wind and solar energy, it is not keeping pace with the trajectory needed to achieve net zero emissions by 2050, particularly in terms of energy efficiency gains, system electrification and the adoption of low-carbon energy and fuel sources.