The $100 Billion Clean Fuel Challenge: Turning 2030 Ambitions into Action

Global investment in clean fuels must increase four times by 2030 to achieve global clean fuel goals, according to a World Economic Forum report released today. The report emphasizes that clean fuels, such as biofuels and hydrogen derivatives, are crucial for the energy transition, helping to improve energy security, generate jobs, and reduce emissions in transportation and industry. Currently, liquid and gaseous fuels account for 56% of global energy use. The report, titled “Fuelling the Future,” discusses policies, business strategies, and financing options to turn global targets into viable economic projects and includes a Digital Playbook with case studies to aid implementation.

Roberto Bocca, from the World Economic Forum, stated that clean fuels offer a path to sustainability while meeting energy demands. The report notes that clean fuels currently represent just over 1% of clean energy investment, but initiatives like the “Belém 4x” pledge show increased commitment from over 25 countries to boost production and use by 2035. Achieving these goals requires coordinated efforts in policy, finance, and industry to develop more viable projects that yield returns for investors and long-term economic benefits.

Cate Hight from Bain & Company mentioned that the focus for business leaders has shifted to how and when to invest in clean fuels. Successful companies are rethinking their project approaches to prioritize customer needs, embrace flexibility, and manage investment risks. However, challenges such as high initial costs, uncertain demand, and fragmented policies hinder project advancement. Addressing these issues requires predictable policies, effective public-private risk-sharing, and better collaboration across relevant sectors. The report draws on extensive research and case studies from various regions.