According to the 2025 Energy Transition Index, which factor is crucial for attracting long-term investment in energy transition?

Correct — B. The World Economic Forum's Fostering Effective Energy Transition 2025 report, which carries the Energy Transition Index, lists five priorities.

The first: 'Adopt stable, adaptive policy frameworks to attract long-term capital and cultivate cooperation.'

On investment the report is direct: attracting long-term investment requires clear market signals, reduced risk, and stable policy and financial conditions.

Adaptive and stable policy frameworks → option (b).

Why the others are wrong

• (a)
  High electricity tariffs — High tariffs raise the cost of energy for users. The ETI scores affordability under its equity dimension, and the report credits moderating energy prices for equity's rebound in 2025.
• (c)
  Rapid fossil fuel subsidies — The report credits subsidy reform, not new subsidies. It links equity's 2025 rebound to structural subsidy reforms, and rapid fossil fuel subsidies would work against a transition away from fossil fuels.
• (d)
  Deregulated industrial zones — Deregulation is not the lever it names. The ETI treats regulation and political commitment as a core enabler of transition readiness, and the report calls for stable regulation, not less of it.

The Energy Transition Index (ETI) is published by the World Economic Forum in collaboration with Accenture. The 2025 edition, released in June 2025, covers 118 countries.

A country's score blends two sub-indices. System performance (60%) is split evenly across security, equity and sustainability. Transition readiness (40%) measures the enablers.

Readiness has two core enablers: regulation and political commitment, and finance and investment. Its enabling factors are innovation, infrastructure, and education and human capital.

Key facts

• The ETI 2025 appears in the WEF report Fostering Effective Energy Transition 2025, published in June 2025 with Accenture.
• It ranks 118 countries, with Sweden first, followed by Finland and Denmark.
• India ranked 71st in the ETI 2025, with a score of 53.3.
• The report's first priority is to adopt stable, adaptive policy frameworks that attract long-term capital.

Common traps

• Crediting the ETI to the IEA or IRENA: it is the World Economic Forum's index.
• Picking deregulation because it sounds investor-friendly: the report asks for stable regulation, not less of it.

No directly related past PYQ was found.