What happened
The World Economic Forum's Energy Transition Index 2026, in collaboration with Accenture, tracks energy systems across 120 countries using 44 indicators and reveals that the global energy transition is fracturing despite record investment of $3.3 trillion in 2025. Transition readiness declined for the first time in over a decade, with policy certainty and financing conditions identified as the sharpest constraints on momentum. The report finds that only 24% of countries improved simultaneously across security, affordability, and sustainability, while the Strait of Hormuz disruption exposed critical vulnerabilities in energy security, supply diversification, and system reliability.
Why it matters
Energy transition progress is stalling at a critical moment; investment alone is no longer sufficient. Executives must recognize that energy security, affordability, and resilience are now competing strategic priorities, and that capital concentration in advanced economies is leaving emerging markets acutely exposed, with implications for supply chain resilience, competitive positioning, and stakeholder trust.
Action needed
Map organizational exposure to energy and critical-mineral supply chain fragmentation; develop dual strategies for energy resilience and cost management in emerging markets; reassess long-term capital allocation for clean-energy infrastructure given weakened financing conditions.