Energy transition readiness assessment for developing Asia and the Pacific
Asia and the Pacific is home to 52% of the world’s population, 35% of global gross domestic product,
41% of global energy consumption, and 46% of the world’s greenhouse gas emissions. The region’s energy mix, which has a 20% higher emission intensity than the global average, is central to achieving global net-zero targets. However, with rising energy demand, reliance on coal power generation, energy import dependence and depth of energy-intensive manufacturing, and hard-to-abate sectors such as aluminum, cement, shipping, and trucking make the region’s energy transition even more challenging.
An effective transition to cleaner energy will enhance energy security, mitigate vulnerabilities tied to
global energy supply fluctuations, create millions of green jobs, and improve access to reliable electricity for millions of people.
The energy transition readiness assessment (ETRA) framework provides a structured, data-driven,
and forward-looking approach to evaluate and analyze the readiness of developing Asian countries for
energy transition. The ETRA’s relevance stems from the fact that the region’s energy transition will be crucial for global efforts to reduce carbon emissions to net zero, and an equitable, secure, and sustainable energy transition is vital to the region’s future.
The ETRA analysis covers 25 out of the 41 developing member countries of the Asian Development Bank
(ADB) and Brunei Darussalam (collectively termed ETRA countries). The assessment also offers insights
to close the existing energy transition gaps for small island developing states (SIDS) (Chapter 4: Energy
Transition in Small Island Developing States).
Developed in collaboration with the World Economic Forum, the ETRA takes inspiration from the forum’s
long-running Energy Transition Index (ETI), borrowing from the index’s framework, methodology, and
indicator selection while ensuring it is built around the unique conditions and needs of developing Asia and the Pacific.
The ETRA framework includes a comprehensive set of dimensions and indicators that reflect the
multifaceted nature of energy transition readiness. Countries are scored on a scale of 0 (least ready) to
100 (most ready) across 7 dimensions and 22 subdimensions, further categorized into 61 indicators
that help capture specific focus areas. The seven main dimensions include (i) Energy System, (ii) Energy
Economy Linkages, (iii) Infrastructure System, (iv) Social System, (v) Technology and Diffusion Ecosystem,
(vi) Macroeconomic and Investment Environment, and (vii) Regulatory Environment.
The median scores of each dimension and its indicators are further compared with “advanced economies” and “world” median scores to assess the readiness status of the assessed countries in the larger global context.
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