Index Commentary

Albania increases by one place in the Index, mostly due to an increase in social equity and environmental impact mitigation. However, a decrease in energy security was driven by a large increase in the energy consumption growth rate. This negative trend could partly be offset by an increased diversity of electricity production which remains nonetheless Albania’s weakest indicator. Social equity improves as Albania provided better quality and more affordable electricity to its population. Environmental performance is strong and further increases due to lower emissions intensity per GDP per capita and lower emissions from electricity and heat generation. Given its increase in energy intensity per capita, Albania outperforms peer countries with similar energy intensity levels in mitigating its environmental impact. Performance across contextual dimensions is relatively constant. The weak economic position is mostly caused by high costs of living as proportion of household consumption expenditure, while credit availability and macroeconomic stability receive slightly better scores.