Hong Kong and Singapore Rank in the Bottom 10 of New Global Energy Vulnerability Index

Market research company Euromonitor International has released its first-ever Global Energy Vulnerability Index, as part of its ‘New Economic Reality: Rising Energy Pressures’ report, revealing individual countries’ exposure to energy shocks.

The Global Energy Vulnerability Index 2023 is designed to help leaders and businesses assess and benchmark a country’s energy security, providing insights into potential risks, challenges, and opportunities in the markets where they operate or plan to expand into in the future.

Euromonitor International used six groups of indicators to measure each country’s level of energy vulnerability: 

  • Energy self-sufficiency (30% of the total score (TS))
  • Alternatives to fossils (35% TS)
  • Energy reserves potential (10% TS)
  • Energy accessibility (5% TS)
  • Energy efficiency (10% TS), and
  • Economic resilience (10% TS)

Norway, Canada, Australia, and the US rank at the top of the index due to their strong energy self-sufficiency, ample energy resources, diverse energy mix, and high economic resilience.

At the other end of the table¸ Asian financial powerhouses Singapore and Hong Kong rank among the bottom 10 performers because of heavy reliance on energy imports despite their good scores in energy efficiency and economic stability.

The smaller size of Singapore and Hong Kong also limits renewables capacity, adding to the city-states’ limitations.

Aleksandra Svidler, Consultant for Economies at Euromonitor International, said: “Understanding a country or a region’s vulnerability to energy shocks will inform business strategy and enable an optimal plan for energy sourcing, as well as help to identify the white spaces for investment.”

“Overall, economies that are heavily reliant on imports, with low adoption of renewables, weak energy efficiency, and economic instability are more vulnerable to energy risks, “ Svidler added.