As it aspires to increase the share of renewable energy (RE) in its power mix, the Philippines drastically improved its ranking to 76th out of 118 countries in the World Economic Forum’s (WEF) 2025 Energy Transition Index (ETI).

This year’s jump is a reversal of the country’s slide to 105th out of 120 countries in the 2024 ETI, from its previous position of 94th in 2023.

WEF’s ETI is used to evaluate countries’ recent efforts toward improving energy security.

In the latest ETI, the Philippines was grouped under emerging Asia, a region that has shown progress through reforms, infrastructure improvements, and increased investments in clean energy.

According to Geneva, Switzerland-based WEF, the Philippines received an ETI score of 53, placing it ninth within the emerging Asia group, which has an average ETI score of 53.2.

Most of its Southeast Asian neighbors, such as Malaysia (ranked 47th), Vietnam (49th), Thailand (51st), Singapore (52nd), Indonesia (58th), and Cambodia (73rd), recorded higher ETI scores than the Philippines. Only Laos and Brunei Darussalam placed lower.

Within the emerging Asia group, China ranked the highest, placing 12th overall.

The Philippines continues its pursuit to reach 35-percent RE by 2030, and 50 percent by 2040. However, progress has been slightly uneven, with recent reports of some international investors showing reluctance to proceed with their RE plans in the country.

Juan Paolo Colet, analyst and managing director at Chinabank Capital Corp., explained to Manila Bulletin that there is a slight hesitation coming from RE sponsors, stating that “a recurring concern that appears to be holding back the full potential of our energy sector is grid capacity and infrastructure. We need to accelerate the expansion and modernization of the grid as part of a national strategy of ensuring sustainable energy security.”

Despite this, Colet is positive that the country is still well-positioned to accelerate its RE scale-up.

“I think Philippine energy policy is on the right track, and what is important is sustaining the momentum. There is strong investment interest in RE development, and domestic banks are ready to provide the necessary financing for bankable projects,” he said.

Globally, WEF saw an increased adoption of RE, alongside stable energy prices, subsidy cuts, and improvements in energy efficiency.

However, despite these advancements, global energy security slowed as nations saw inflexible power systems, import dependence, and limited diversification of energy sources.

WEF said that the ETI saw the fastest progress prior to pandemic levels, as 65 percent of countries have improved, with Sweden, Finland, Denmark, Norway, and Switzerland taking the lead in commendable energy policies, infrastructure, and clean energy diversification.

Roberto Bocca, head of Center for Energy and Materials at WEF, shared that 28 percent of countries, such as Brazil, China, the United States (US), and Nigeria, have advanced their energy systems.

While there has been a 1.1-percent marginal record growth in the ETI, WEF pointed to a significant stagnation in world energy security, citing higher emissions driven by artificial intelligence (AI), data centers, cooling, and electrification.

“Despite $2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tons in the hottest year on record, as energy demand rose 2.2 percent,” it explained.

According to Muqsit Ashraf, group chief executive at Accenture Strategy, AI has become transformative in terms of a more intelligent, adaptive, and resilient energy future.

“Leading companies are harnessing technology, data, and AI to accelerate their reinvention and placing people at the core of that change—ultimately becoming more resilient and delivering long-term profitable growth,” he said.

To further encourage nations to improve their energy systems, WEF called for adaptive policies that attract capital and cooperation, modernized infrastructure, workforce skill investments, clean technology deployments, and increasing capital investments in developing economies.