The transformation of the global energy system is well underway, and renewables have already overtaken investments in fossil fuels. Energy and climate policies now take centre stage in domestic and international affairs. Estonia, with its ambitions to generate all power from renewable sources by 2030 and make the country completely climate-neutral by 2050, leads the way.
According to a recent report by the World Economic Forum, Estonia is now in the top 10 developed economies for effective energy transition. The country scored a record 68.2 points in the Energy Transition Index (ETI), overtaking Germany, the United States and the United Kingdom.
Leading by example
Why does that matter? Despite the strong momentum and push from global leaders, the energy transition has been challenged by near-term exigencies. Following the COVID-19 pandemic, a combination of economic factors and supply chain constraints led to affordability challenges, shortages and blackouts in different parts of the world.
The global energy landscape is profoundly transforming, reshaping geopolitics and spurring innovation. The burden is on developed nations to lead by example, and they deliver. The report puts Estonia into the Advanced economies bracket, the most developed group of nations led by Nordic states.
Across several factors, Estonia, is lauded for its exceptional performance in the secure dimension of the ETI, on par with the United States and Australia in this regard. It measures energy supply, reliability, and resilience, which is one of the top priorities for governments and economic stakeholders worldwide.
Estonia’s high score in this dimension reflects its mature energy infrastructure and capacity to withstand potential disruptions to gas supply chains, which was proven by the unprecedented events of the last few years. This resilience is vital, as secure and uninterrupted access to energy at affordable prices is a primary concern globally, impacting individuals, companies, and nations alike.
Investors could also take notice — with a clear policy framework and fast regulations, Estonia is on its way to one of the cleanest and most well-developed energy grids in the region, suggests WEF. Adding significant green generation and storage capacity across wind, solar, and hydrogen will only add to the momentum.
Moreover, Estonia’s commitment to energy security is integral to its broader energy transition efforts, notes the report. While the sustainable dimension has garnered significant attention globally, Estonia has strongly focused on energy security and supply reliability. This strategic emphasis on maintaining energy stability contributes to the country’s overall strong position in the ETI rankings.
Estonia’s energy landscape showcases a multifaceted approach to sustainability, combining renewable energy investments with reduced greenhouse gas emissions. This approach aligns with global priorities, such as the Paris Agreement, demonstrating Estonia’s commitment to addressing climate change and achieving a more sustainable energy future.
While the global energy transition is at a critical juncture, Estonia’s unwavering commitment to energy security, combined with its focus on renewable energy and emissions reduction, offers valuable lessons for nations seeking to navigate this issue.
Read the full report here.