New Zealand has the potential to lift its ranking in an international energy sustainability index if it reaches its goal of lifting the amount of renewable electricity produced, the World Energy Council says.
New Zealand is ranked in sixth place, the same position as last year, in the index which assessed 93 countries which belong to the council.
It is behind Sweden, Switzerland, Canada, Norway and Finland, but the report says it has the ability to improve.
"Increased use of renewable energy sources and gas in electricity and heat generation will lower CO2 emissions and improve environmental impact mitigation performance," it says.
The national energy policy framework - based on diverse resource development, environmental responsibility, efficient use of energy, and secure and affordable energy - should help lift the country's performance in energy security, affordability and environmental impacts.
New Zealand aims to increase the amount of renewable electricity used from 70 percent to 90 percent by 2025.
The council says most of the countries are still far from achieving fully sustainable energy systems.
BusinessNZ, a member of the council, says New Zealand's high ranking is testament to the development of sound energy policies by successive governments over the years.
"Affordable, secure, renewable energy sources are essential for our standard of living and for productive business which supports it.
"There is much room for improvement, however this ranking is a welcome acknowledgement of success in this important area," said chief executive Phil O'Reilly.