Investment in clean fuels will need to quadruple by 2030 to meet global clean fuel ambitions, according to a new World Economic Forum (WEF) report.

Highlighting the potential of the sector to stimulate job growth and diversify energy supply, the report sets out policy, business and financing measures that can turn global goals into credible, economically viable projects.

While clean fuels currently make up just over one per cent of global clean energy investment, it is growing. Clean fuels, mainly liquid or gaseous fuels, ranging from biofuels to hydrogen derivatives and lower-carbon fossil fuels, offer countries a way to strengthen energy security, support industrial and rural jobs and cut emissions in transport and industry.

The new report, Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market, developed in collaboration with Bain & Company, shows how clean fuel investment can build on and strengthen existing systems and infrastructure, and unlock sustainable economic growth.

“Clean fuels represent an important pathway to advancing sustainability while continuing to supply the energy required by the global economic system,” said Roberto Bocca, head of the Centre for Energy and Materials, World Economic Forum. “Our new research shows that the clean fuels industry can build on existing infrastructure to deliver durable environmental benefits alongside economic value.”

Yet, despite this growing interest, many clean fuel projects still struggle to advance due to high upfront costs, uncertain demand, fragmented value chains and uneven regional policy environments. The report notes that progress will require coordinated action across policy, finance and industry to bring forward a larger pipeline of viable projects that deliver returns to investors and long-term value to national economies.

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