The changing energy order

To understand how the G20 countries are progressing in the energy transition, Oxford Economics collaborated with PwC to create PwC’s Changing Energy Order Index. The index combines data from international economic organizations like the OECD and World Bank with with Oxford’s own forecasts to evaluate each country’s progress across five key pillars.

While 195 countries have adopted the Paris Agreement to limit the increase in global average temperatures to well below 2°C above pre-industrial levels, not all energy transitions will be the same. Given the myriad of factors influencing countries’ progress towards their clean energy goals–geopolitical and energy security issues, concerns over affordability, financing constraints–it is clear that each signatory is engaged in its own energy transition with its own pace and trajectory. It is critical for policymakers and business leaders to understand the local dynamics of each energy transition in order to effectively manage and aid its progress.

To that end, PwC and Oxford Economics collaborated to create PwC’s Changing Energy Order Index. Combining data from the UN, OECD, World Bank and IMF with Oxford Economics’ forecasts, the index evaluates the G20 countries’ energy transitions across five key pillars: transition progress, investment and financing ability, economic and political stability, transition resources and policy ambition. The index was used to facilitate a cross-country analysis and develop insights into the key challenges and opportunities in the global energy transition, highlighting the progress made and identifying factors that may be inhibiting faster progress.