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Ranked: Countries with the Most Sustainable Energy Policies

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Countries with the Most Sustainable Energy Policies

strongest energy policies index

Ranked: Countries With Most Sustainable Energy Policies

The sourcing and distribution of energy is one of the most pressing issues of our time.

Just under one billion people still lack basic access to electricity, and many more connect to the grid through improvised wiring or live through frequent blackouts. On the flip side of the socioeconomic spectrum, a growing chorus of voices is pressuring governments and corporations to power the global economy in a more sustainable way.

Today’s visualization – using data from the World Energy Council (WEC) – ranks countries based on their mix of policies for tackling issues like energy security and environmental sustainability.

The Energy Trilemma Index

According to WEC, there are three primary policy areas that form the “trilemma”:

1. Energy Security
A nation’s capacity to meet current and future energy demand reliably, and bounce back swiftly from system shocks with minimal disruption to supply. This dimension covers the effectiveness of management of domestic and external energy sources, as well as the reliability and resilience of energy infrastructure.

2. Energy Equity
A country’s ability to provide universal access to reliable, affordable, and abundant energy for domestic and commercial use. This dimension captures basic access to electricity and clean cooking fuels and technologies, access to prosperity-enabling levels of energy consumption, and affordability of electricity, gas, and fuel.

3. Environmental Sustainability
The transition of a country’s energy system towards mitigating and avoiding environmental harm and climate change impacts. This dimension focuses on productivity and efficiency of generation, transmission and distribution, decarbonization, and air quality.

Using the dimensions above, a score out of 100 is generated. Here’s a complete ranking that shows which countries have the most sustainable energy policies:

RankCountryTrilemma ScoreLetter Grade*
1🇨🇭 Switzerland85.8AAA
2🇸🇪 Sweden85.2AAA
3🇩🇰 Denmark84.7AAA
4🇬🇧 United Kingdom81.5AAA
5🇫🇮 Finland81.1AAA
6🇫🇷 France80.8AAA
7🇦🇹 Austria80.7AAA
8🇱🇺 Luxembourg80.4BAA
9🇩🇪 Germany79.4AAA
10🇳🇿 New Zealand79.4AAA
11🇳🇴 Norway79.3CAA
12🇸🇮 Slovenia79.2AAA
13🇨🇦 Canada78.0AAC
14🇳🇱 Netherlands77.8BAB
15🇺🇸 United States77.5AAB
16🇨🇿 Czech Republic77.4AAB
17🇺🇾 Uruguay77.2ABA
18🇪🇸 Spain77.0BAA
19🇭🇺 Hungary76.8AAB
20🇮🇹 Italy76.8BAA
21🇮🇸 Iceland76.2BAB
22🇱🇻 Latvia76.1ABA
23🇸🇰 Slovakia75.6ABA
24🇧🇪 Belgium75.2BAA
25🇮🇪 Ireland75.2CAA
26🇷🇴 Romania75.1ABA
27🇭🇷 Croatia74.9ABA
28🇦🇺 Australia74.7BAB
29🇵🇹 Portugal74.0BBB
30🇪🇪 Estonia73.8BAB
31🇯🇵 Japan73.8CAB
32🇮🇱 Israel73.3CAB
33🇲🇹 Malta72.9DAA
34🇭🇰 Hong Kong (China)72.5DAB
35🇦🇷 Argentina72.4BAB
36🇱🇹 Lithuania72.4CBA
37🇰🇷 South Korea71.7BAC
38🇨🇷 Costa Rica71.6CBA
39🇧🇷 Brazil71.6ABA
40🇲🇽 Mexico71.3ABB
41🇧🇬 Bulgaria71.3BBB
42🇷🇺 Russia71.2AAC
43🇸🇬 Singapore71.2DAB
44🇻🇪 Venezuela70.3ABB
45🇪🇨 Ecuador69.6ABB
46🇵🇦 Panama69.5CBA
47🇬🇷 Greece69.5CBA
48🇨🇱 Chile69.4BBB
49🇨🇴 Colombia69.3BCA
50🇲🇺 Mauritius69.0CBB
51🇲🇾 Malaysia68.5BBC
52🇦🇪 U.A.E.68.3BAD
53🇵🇱 Poland68.3BBB
54🇨🇾 Cyprus67.9DBB
55🇶🇦 Qatar67.9AAD
56🇧🇳 Brunei67.7CBC
57🇦🇿 Azerbaijan67.7BBB
58🇵🇪 Peru66.8ACB
59🇰🇿 Kazakhstan66.6BBC
60🇦🇲 Armenia66.3CBB
61🇺🇦 Ukraine66.0ACC
62🇸🇻 El Salvador66.0BCA
63🇴🇲 Oman65.5BAD
64🇲🇪 Montenegro65.4CBB
65🇰🇼 Kuwait65.2CAD
66🇹🇷 Turkey64.9CBC
67🇵🇾 Paraguay64.7DBA
68🇹🇭 Thailand64.6CBC
69🇮🇩 Indonesia64.1BCC
70🇷🇸 Serbia63.8BBC
71🇲🇰 North Macedonia63.7CBC
72🇨🇳 China63.7BBD
73🇦🇱 Albania63.7DBA
74🇮🇷 Iran63.6ABD
75🇹🇳 Tunisia63.6BBC
76🇹🇹 Trinidad and Tobago63.3CAD
77🇬🇪 Georgia63.1CBC
78🇸🇦 Saudi Arabia62.8CAD
79🇧🇦 Bosnia and Herz.62.1BBC
80🇧🇭 Bahrain62.1BAD
81🇱🇧 Lebanon61.6DAC
82🇩🇿 Algeria61.3CBD
83🇲🇦 Morocco61.1CCC
84🇧🇴 Bolivia60.4BCC
85🇱🇰 Sri Lanka60.1BCB
86🇦🇴 Angola60.0ADB
87🇪🇬 Egypt59.9BBD
88🇬🇹 Guatemala59.7BCC
89🇬🇦 Gabon59.5CBD
90🇳🇦 Namibia59.1CDA
91🇻🇳 Vietnam58.9ACD
92🇿🇦 South Africa58.9DBD
93🇮🇶 Iraq58.9BBD
94🇵🇭 Philippines58.6BCC
95🇯🇴 Jordan58.5DBC
96🇧🇼 Botswana57.7DCC
97🇩🇴 Dominican Republic57.6DBB
98🇯🇲 Jamaica56.9DBC
99🇹🇯 Tajikistan55.7DCC
100🇭🇳 Honduras55.3DCC
101🇸🇿 Eswatini55.1DCC
102🇳🇮 Nicaragua54.5DCC
103🇬🇭 Ghana52.9CDC
104🇲🇲 Myanmar51.9BDB
105🇰🇭 Cambodia51.6CDC
106🇰🇪 Kenya51.3BDB
107🇲🇩 Moldova51.2DCD
108🇲🇳 Mongolia51.1DCD
109🇮🇳 India50.3BDD
110🇵🇰 Pakistan49.6CDD
111🇨🇮 Côte d’Ivoire49.3BDC
112🇿🇲 Zambia47.8CDB
113🇨🇲 Cameroon47.4BDD
114🇧🇩 Bangladesh47.1DDC
115🇿🇼 Zimbabwe46.0CDC
116🇲🇷 Mauritania45.6BDD
117🇳🇵 Nepal44.3DDC
118🇸🇳 Senegal43.4DDD
119🇹🇿 Tanzania42.5DDC
120🇪🇹 Ethiopia42.3DDC
121🇲🇬 Madagascar42.2CDC
122🇲🇿 Mozambique41.4DDC
123🇳🇬 Nigeria40.7BDD
124🇲🇼 Malawi39.1DDB
125🇧🇯 Benin36.3DDD
126🇹🇩 Chad33.8DDD
127🇨🇩 D.R.C.33.8DDC
128🇳🇪 Niger30.0DDD

*The letter grade represents national performance in three dimensions. The first letter represents Security, the second letter represents Equity, the third letter represents the Environmental Sustainability. The top grade is AAA, the lowest is DDD.

Highs, Lows, and Outliers

Every country has unique circumstances — from strategic energy reserves to green energy ambitions — that shape their domestic energy policies. Let’s take a closer look at some of the more interesting situations around the world.

Sweden

sweden energy trilemma index

Qatar

qatar energy trilemma index

Singapore

singapore energy trilemma index

Dominican Republic

dominican republic energy trilemma index

Niger

niger energy trilemma index

Global Energy Outlook

Achieving the balance of prosperity and sustainability is a goal of nearly every country, but it takes stability and the right mix of policies to get the job done.

The fact that many trilemma scores are improving is an indicator that the world’s patchwork of energy policies are slowly moving in the right direction.

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China

An Investing Megatrend: How Emerging Wealth is Shaping the Future

Emerging markets are ascending on the global stage and wielding more economic power—and it’s drastically altering the investment landscape.

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Globalisation is a rising tide that lifts all boats.

In an increasingly connected world, countries are engaging with global markets more than ever before. As a result, global wealth is shifting towards emerging markets. This megatrend—a global trend with sustained impacts—is profoundly influencing everyday life, society, and business.

Shifting Economic Power

Today’s infographic from iShares by BlackRock explains how emerging markets are classified, along with which countries are growing the fastest—and how investors can follow the money.

BlackRock-Emerging-Markets Global Wealth

What Is An Emerging Market?

Every economy goes through five distinct stages of growth:

  1. Traditional Society: Based on primary industries, such as subsistence farming.
  2. The Pre-Conditions of Take-off: Spread of technology creates a more productive agricultural economy.
  3. Take-off: Industrialisation begins, and technological breakthroughs occur.
  4. Drive to Maturity: More complex manufacturing, and large-scale infrastructure investment takes place.
  5. Age of Mass Consumption: Urban society and a tertiary industry dominate, as disposable income grows.
  6. Source

    Emerging markets fall into the transitory stages between ‘Take-off’ and ‘Drive to maturity’ as their economies modernise. Today, such countries offer lots of promise, but also come with a range of challenges:

    • Pro: Greater return potential, growing middle class, increasing consumption
    • Risk: Political instability, lack of infrastructure, lack of market access

    Between 2000–2018, emerging markets’ share of global wealth has more than doubled from 10% to 24%. China is a major player in this transformation.

    China’s Economic Might

    China’s impressive trajectory from agricultural economy to global superpower cannot be ignored. The nation is on track to overtake the U.S. in terms of gross domestic product (GDP, nominal) by the year 2030.

    Year🇨🇳 China GDP🇺🇸 U.S. GDP
    2000$2.2T$12.6T
    2010$6.1T$15T
    2018$10.8T$17.8T
    2020E$16T$20.2T
    2030E$26.5T$23.5T
    2040E$36.6T$28.3T
    2050E$50T$34.1T

    China’s enormous growth has a ripple effect on its GDP composition. A more affluent middle class is buying higher-priced discretionary goods—such as cars and electronics—boosting the country’s domestic consumption.

    Investors must keep an eye out for other emerging markets that are emulating China’s example.

    One Piece Of the Puzzle

    China is just one case study—several other economies are also making strides on the world stage. Each country brings unique advantages, but also barriers to overcome.

    CountryReal GDP Growth (2019E)StrengthsWeaknesses
    🇮🇳 India7.4%✔ Rapidly growing economy
    ✔ Vast working-age population
    ✘ Red tape
    ✘ Lack of infrastructure
    🇨🇳 China6.2%✔ Good infrastructure
    ✔ High R&D spending
    ✘ Ageing population
    ✘ High debt
    🇮🇩 Indonesia5.1%✔ Cheap labour
    ✔ Diversifying economy
    ✘Wide income gap
    ✘ Lack of infrastructure
    🇲🇽 Mexico2.5%✔ Integrated with global economy
    ✔ Cheap and qualified labour
    ✘ Political unrest
    ✘ Reliant on U.S. ties
    🇧🇷 Brazil2.4%✔ Diversifying economy
    ✔ Strategic location
    ✘ High production costs
    ✘ Inflation
    🇳🇬 Nigeria2.3%✔ High FDI
    ✔ Diversifying economy
    ✘ Political unrest
    ✘ Lack of infrastructure
    🇷🇺 Russia1.8%✔ Natural resources
    ✔ Educated workforce
    ✘ Political unrest
    ✘ Lack of FDI
    🇹🇷 Turkey0.4%✔ Cheap labour
    ✔ Strategic location
    ✘ Political unrest
    ✘ Red tape

    Source: Global Finance Magazine

    With these major emerging markets in mind, how can investors tap into the global wealth shift?

    Where Are the Opportunities?

    There are several avenues for an investor to play into this megatrend: structural solutions, consumer goods, and international investment.

    Structural solutions

    Emerging markets are increasingly gaining access to technology. Growth in connectivity is closely linked with improved productivity, and many countries are ripe for a surge in online users.

    However, much can still be done to speed up technological adoption, such as boosting 3G/4G network volume and coverage, and lowering the cost of data and smartphones to be more economical.

    By helping solve some of these structural constraints through technological innovation, investors can tap into the economic growth of emerging markets.

    Consumer goods

    As disposable income increases, a sizeable middle class will seek out products that elevate the quality of life. In India, domestic consumption is estimated to hit $6 trillion by 2023—four times its 2018 level.

    The region’s spending will likely be propelled by higher-priced goods, as well as a wider variety of choices across food, transport, and fitness categories.

    Global brands that plan to expand into emerging markets, or companies with a proven track record in these areas, are potential winners for investment.

    International investment

    Last but not least, investors can identify local winners in emerging wealth markets, through active or passive investing.

    An active investment strategy would be to directly buy into individual company stocks, listed on a country’s stock exchange. Meanwhile, a passive investing strategy would be to seek out exchange-traded funds (ETFs) covering specific markets, and/or sectors within emerging markets. Many of these are also listed on major exchanges.

    Diversifying either or both strategies across two or more countries can help mitigate risk. Investors can also choose index funds that broadly encompass all emerging markets.

    As countries climb the economic ladder, the emerging wealth shift continues to gain momentum. By staying attuned to these macro changes, investors may unlock long-term growth from emerging markets.

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Visualized: Ranking the Goods Most Traded Between the U.S. and China

This infographic ranks the top 10 exports and imports of the U.S. and China, the two most significant global economic superpowers today.

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Most Traded Goods U.S. and China

The Most Traded Goods Between the U.S. and China

From a young age, many of us were taught that sharing is caring.

Many countries have also followed this simple principle, in the interest of growth and prosperity, when doing business on a global scale.

Today’s infographic from HowMuch.net charts the top imports and exports between the U.S. and China, pulled from the Observatory of Economic Complexity’s (OEC) global market data for 2017.

Which items do you find most surprising?

Give and Take: The Trade Relationship of the U.S. and China

Two of the world’s largest superpowers today, the U.S. and China have typically had a long-standing trade relationship going back decades.

The table below shows the top 10 exports the U.S. sent to China in 2017, along with the proportion of each item in the total export value of $132 billion. The top 10 items account for 39% of total exports to China.

The Top 10 Exports from the U.S. to China (2017)

ItemsValue (US$B)% of Total Exports
Aeroplanes and other aircraft$13.19.9%
Soya beans$12.59.4%
Vehicles with only spark-ignition internal
combustion reciprocating piston engine
$7.96.0%
Electronic integrated circuits; Processors and controllers$4.93.7%
Oils$4.03.0%
Gold$2.11.6%
Machines and apparatus for the manufacture of semiconductor
devices or of electronic integrated circuits
$1.91.5%
Vehicles for transport of persons$1.91.4%
Petroleum gases and other gaseous hydrocarbons$1.71.3%
Copper$1.61.2%

While the majority of these are highly specialized, manufactured products─such as airplanes, integrated circuits, and semiconductors─the U.S. still relies on exporting many basic commodities such as gold, copper, and soya beans.

Below is the list of the top 10 imported products from China, and the percent that each product accounts of the total $444 billion in 2017. These top 10 items make up 30% of all products imported from China.

The Top 10 Imports from China to the U.S. (2017)

ItemsValue (US$B)% of Total Imports
Telephones for cellular networks or for other wireless networks$43.79.8%
Automatic data processing machines$37.28.4%
Trycicles, scooters and similar wheeled toys & other toys$12.32.8%
Communication apparatus$11.32.5%
Games; articles for funfair$5.41.2%
Other Monitors$4.71.1%
Units of automatic data processing machines$4.41.0%
Electrical static converters$4.61.0%
Seats$4.31.0%
Reception apparatus for television$4.20.9%

China is best known for its electronics and technology-focused products─with electronics products accounting for two-thirds of the top 10 Chinese imports. In 2017, China also dominated all electronics imports into the U.S., claiming over 60% of the market.

But how has the recent trade war impacted the imports and exports between the U.S. and China?

The U.S.-China Trade War Continues

At one point, China was the United States’ top trading partner in terms of the total value of imports and exports. Since the trade war began in 2018, China has fallen to third place.

For example, soybean exports to China in 2019 are predicted to only reach a third of numbers seen in 2018, and the price of this commodity has been nearly cut in half.

In the first nine months of 2019 alone, the U.S. saw a 13.5% drop in imported products from China, due to actual and threatened increased tariffs. In addition, U.S. exports to China dropped by 15.5%─a significant loss of $53 billion.

The Future of U.S.-China Trade

To date, the U.S. has enacted tariffs on over $550 billion worth of imported products from China. In response to the U.S. tariffs, China has added tariffs to $185 billion worth of exported goods from the United States.

With the 2020 U.S. presidential election looming on the horizon, threats of increased tariffs seem to dominate headlines internationally. If these trends continue, many U.S. businesses—both at home and abroad in China—could find their bottom lines threatened by rising trade costs.

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