The World Economic Forum warns the coronavirus pandemic is about to establish a new normal in all aspects and that it could erase recent progress in the switch to renewables and energy efficiency. In an annual report, it called on greater collaboration and a change in the approach to energy. The World Economic Forum placed Slovenia at the highest position in Southeastern Europe in the energy transition index and praised Bulgaria for substantial progress. Serbia and BiH are in the lowest fifth of the global list.
Many fundamental challenges will remain after the unprecedented disruption caused by COVID-19 and the shift to clean energy is under threat, the World Economic Forum said in an annual report. It pointed to the volatility in energy prices, the drop in demand and the risks that socioeconomic costs prompt changes in the strategy for the sector. The World Economic Forum highlighted the improvements concerning the energy transition in 94 out of 115 states on its list but also expressed concern about environmental sustainability.
The goal is a more inclusive, sustainable, affordable and secure energy system responding to global issues and creating value, the authors said. The World Economic Forum has an energy transition methodology that leans on energy access and security, environmental sustainability and economic development and growth.
Decision makers need to address the crisis by rethinking how energy is produced, supplied and consumed and by fostering collaboration, the organization added. It suggested the fall in fuel prices and demand should be used as an opportunity for structural reform and diversification.
The energy transition report shows the ranking of 115 countries. WEF acknowledged 75% of them have advanced in environmental sustainability but also noted the category has the lowest score overall among the three main indicators. Carbon pricing, shutting down coal plants ahead of schedule and redesigning electricity markets to integrate renewable energy sources are the most positive factors.
Sweden is at the top of the energy transition index for the third year in a row with 74.2 points on a scale to 100, though it lost 0.7 points. Switzerland and Finland are next, while Norway slipped from the third to fifth position.
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