Low-Carbon Energy Transition: Nordic Countries Lead, with Some Latin American and African Countries Strong Too

In a time when interest in combating climate change seems to be fading, the importance of greening the world economy remains undeniable. The Global Innovation Index (GII) emphasized this by including – for the first time in its 2024 edition – an indicator that measures low-carbon energy use, so the share of a country’s total primary energy consumption that is from low-carbon intensive sources. The indicator is placed in the GII sub-pillar 3.3 on Ecological sustainability. Based on these data, let us dive into an analysis of the world energy consumption and how different regions are powering their economies.

While fossil fuels continue to dominate the global energy mix, their combined share has decreased slightly from 87% in 2012 to 83% in 2022, with alternative energy sources gradually gaining ground; from 13% to 18%, respectively.

Figure 1: World total energy consumption, by energy source (%), 2012-2022

Source: WIPO estimates based on GII Database and The EI Statistical Review of World Energy

Notes: Low-carbon energy sources are in green and combined into a single percentage at the top. “Energy consumed” is defined as the total primary energy consumed by each country, factoring in energy that is imported and consumed (as opposed to imported but transited to another country) and primary energy that is produced but exported abroad to be consumed elsewhere. The full energy mix is considered, comprising high-carbon intensive fossil fuel sources; oil, coal, and natural gas; as well as low-carbon intensive sources; hydro, nuclear, wind, biomass, solar, geothermal, etc.

Those economies that are ranked at the top for low-carbon energy use in the GII 2024 are economies that are performing the best in terms of the energy transition. High-income Nordic countries such as Iceland (ranking 1st), Norway (3rd), and Sweden (4th) lead in this indicator (see Table 1). But several middle-income economies such as Paraguay (2nd), Albania (5th) and Tajikistan (6th) have near equally high shares of low-carbon energy consumption. Mozambique’s remarkable performance stands out as the only low-income economy to rank in the top 10, positioned in 7th place. Eleven out of the top 20 are economies from middle- or low-income groups.

Table 1: Top 20 Economies with Highest Share of Low-Carbon Energy Use and Their Income group, 2022

Source: WIPO estimates based on GII Database and the EI Statistical Review of World Energy.

Notes: “Low-Carbon Energy Use” is defined as the total primary energy consumed by each country, factoring in energy that is imported and consumed (as opposed to imported but transited to another country) and primary energy that is produced but exported abroad to be consumed elsewhere. All energy sources are expressed in petajoules. The full energy mix is considered, comprising high-carbon intensive fossil fuel sources; oil, coal, and natural gas; as well as low-carbon intensive sources; hydro, nuclear, wind, biomass, solar, geothermal, etc.

When averaging the indicator of all countries in each region, a European country’s share of low-carbon energy consumption is 28% on average, with Latin America and the Caribbean and Northern America similarly at 26% (see Table 2). Central and Southern Asian countries (21%) and Sub-Saharan African countries (20%) consume around one fifth of their energy form low-carbon sources.

Table 2: Top 5 Economies with Highest Low-Carbon Energy Consumption in the GII 2024, by Region

Source: WIPO estimates based on GII Database and the EI Statistical Review of World Energy.

Notes: “Low-Carbon Energy Use” is defined as the total primary energy consumed by each country, factoring in energy that is imported and consumed (as opposed to imported but transited to another country) and primary energy that is produced but exported abroad to be consumed elsewhere. All energy sources are expressed in petajoules. The full energy mix is considered, comprising high-carbon intensive fossil fuel sources; oil, coal, and natural gas; as well as low-carbon intensive sources; hydro, nuclear, wind, biomass, solar, geothermal, etc.

Europe: The Balanced Innovator

With total energy consumption of 102 exajoules, Europe showcases one of the most balanced and diversified energy portfolios globally. Oil (34%) and natural gas (31%) form the backbone in 2022, but what's truly remarkable is the region's commitment to clean energy. Nuclear energy contributes a substantial 9%, while wind power leads the renewable charge at 5% - the highest wind energy share among all regions. This mix reflects Europe's determined push toward energy transition while maintaining economic stability.

Latin America and the Caribbean: The Hydropower Champion

This region stands out with its impressive 19% hydroelectric power share in 2022 - the highest globally. From a total energy consumption of 39 exajoules, the region demonstrates a unique energy profile where renewable sources play a significant role. Oil remains the primary energy source at 45%, but the combined renewable portfolio (including hydro, wind, solar, and biomass) exceeds 26% - a remarkable achievement in sustainable energy transition.

Northern America: The Technological Diversifier

Consuming 110 exajoules of energy, North America presents a sophisticated energy mix that balances traditional sources with growing renewable adoption. Oil leads at 38%, followed by natural gas at 33%. The region boasts a strong nuclear presence (7%) and a growing renewable sector, with wind (4%) and solar (2%) also contributing.

Central and Southern Asia: The Coal-Dependent Transformer

The region's energy mix reflects its rapid industrialization, with coal comprising 37% of its 62 exajoules total consumption. However, the region is actively embracing change: solar (2%) and wind (1%) are growing, while hydropower contributes 4%. Oil (28%) and natural gas (27%) still provide crucial support to the region's developing economy.

Sub-Saharan Africa: The Emerging Player

With the lowest total consumption at 11 exajoules, this region's energy story is unfolding as one with promising signs of gradual transformation towards low carbon sources. Oil dominates the mix (40%), but the region shows signs of diversification with growing investments in renewable energy, particularly hydropower (11%) and solar installations (1%).

Figure 2: Energy Consumption, by Source and Region, 2022

Source: WIPO estimates based on GII Database and the EI Statistical Review of World Energy.

Notes: The total primary energy consumed by each country, factors in energy that is imported and consumed (as opposed to imported but transited to another country) and primary energy that is produced but exported abroad to be consumed elsewhere. This may result in some double counting when aggregating by region. The full energy mix is considered, comprising high-carbon intensive fossil fuel sources; oil, coal, and natural gas (presented in shades of orange); as well as low-carbon intensive sources; hydro, nuclear, wind, biomass, solar, geothermal, etc. (presented in shared of green).

South East Asia, East Asia, and Oceania: The Industrial Powerhouse

Leading global energy consumption with a staggering 235 exajoules, this region tells a compelling story of industrial might and emerging transitions. Coal remains the dominant energy source, commanding 47% of the energy mix - a testament to the region's industrial backbone. However, change is in the air: renewable energy sources are gaining ground, with wind, solar, and hydropower collectively contributing over 16% of the energy mix. The region's oil consumption, at 25%, reflects its massive transportation and manufacturing needs.

Northern Africa and Western Asia: The Fossil Fuels Haven

With 44 exajoules of total energy consumption, this region's energy landscape is dominated by fossil fuels. Oil (47%) and natural gas (43%) together account for nearly 90% of the energy mix. However, even in this traditional fossil fuel stronghold, change is emerging with solar energy carving out a 1% share, suggesting the beginning of a gradual diversification.

Looking Ahead

The global energy landscape reveals a world in transition. While fossil fuels still dominate, each region shows unique approaches to energy diversification and sustainability. From Europe's balanced portfolio to Latin America's hydropower leadership, and from East Asia's industrial might to Africa's emerging potential, the data paints a picture of a world gradually moving toward a more sustainable energy future. And yet, in light of growing energy demands for the digital economy and geopolitical conflicts, it is everything but certain that past and recent successes will be continued and solidified.

Background

As of its 2024 edition, the Global Innovation Index 2024 is the first edition in which the indicator 3.3.2 Low-carbon energy use (%) is included, under pillar 3.3 on Ecological Sustainability. The data is obtained thanks to the collaboration with the Energy Institute (EI). For the full definition of this indicators, see Appendix III – Sources and Definitions.