Friday, November 27, 2020
Home Climate Baltics and Slovenia lead CEE in terms of energy transition

Baltics and Slovenia lead CEE in terms of energy transition

Every year the World Economic Forum benchmarks countries on their current energy system performance and measures their readiness for the energy transition. According to their most recent study, the world’s energy transition has made slow and steady progress over the past five years, but the COVID-19 crisis risks derailing long-term progress. The list of the top 10 countries remains unchanged, but Central Eastern Europe also shows signs of progress in the energy transition.

Sweden leads the rankings table for the third consecutive year, followed by Switzerland and Finland. Countries with the highest Energy Transition Index are all from Western Europe highlighting the robustness of their energy transition roadmaps. Although adopted policies diverge, the report notes that 82 per cent of the countries that improved their scores over the past six years also reduced pre‑tax energy subsidies.

From Central Eastern Europe, the Baltic countries and Slovenia made it to the top quartile, with Hungary, Slovakia, Romania and Croatia following closely. The report also considered the path that each country follows in their energy transition noting that Bulgaria, the Czech Republic, Slovakia and Ukraine have made consistent and measurable progress on their energy transition over the past six years.

The report shows that energy transition readiness improved across countries, mainly due to an increased level of political commitment and better access to capital and investment. However, sustained progress requires a similar momentum along with other enablers, such as human capital preparedness, robust institutional frameworks and innovative business environments. From the CEE region, the Czech Republic and Hungary achieved substantial gains on their transition readiness, by targeting improvements along with multiple enablers.

The World Economic Forum warns that the rhythm and momentum of the energy transition will potentially be impeded by the cascading effects of the COVID‑19 pandemic, which have already led to unprecedented energy demand and price shocks, and the reallocation of public fund. However allocating stimulus money towards large‑scale new energy infrastructures, such as carbon capture, utilization and storage, clean hydrogen and grid modernization, can create multiplier effects in economic growth and employment.

“Low fuel prices and falling consumer demand in advanced economies offer opportunities to initiate structural economic transformation and diversification in emerging economies and fuel exporting countries, which could prove challenging otherwise in normal circumstances,” – concludes the report.

Most Popular

Lithuania’s wind energy players commit to cooperate with local communities

Participants in the Lithuanian wind energy sector have made a commitment to seek partnerships with local businesses where possible to contribute to regional economic growth.

European gas puzzle: the TurkStream project – interview with Deputy CEO of construction, Erich Jurdik

Dr Erich Jurdik, Deputy CEO of construction of TurkStream speaks about the state of the TurkStream project and its impact on the region’s energy security as well as the future role of gas in Europe’s ongoing energy transition.

Oil and gas players agreed to report methane emissions with a higher level of transparency

In a move that will help tackle one of the biggest and most solvable contributors to the climate crisis, major players in the oil and gas industry agreed to report methane emissions with a new, much higher level of transparency.

The FSRU vessel ‘LNG CROATIA’ left Viktor Lenac shipyard

The FSRU vessel 'LNG CROATIA' has left Viktor Lenac shipyard and has departed for Spain. The arrival of the vessel at the location of the terminal is expected early December in order for the terminal to start commercial operations on January.