A new report from the World Economic Forum (WEF) warns that global investment in clean fuels—such as biofuels, hydrogen derivatives, and synthetic fuels—must surge from the current $25 billion annually to over $100 billion by 2030.
Despite their critical role in decarbonizing hard-to-abate sectors like shipping, aviation, and heavy industry, clean fuels currently account for just 1% of global clean energy investment. The report, titled “Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market,” notes that while political ambition is rising, a reality check is needed to move projects from announcement to execution.
Economic and security dividends:
Beyond environmental benefits, the WEF highlights that scaling the clean fuel sector is a powerful economic engine. The research indicates that clean fuel investments can generate two to three times more jobs than conventional fossil fuel sectors. Furthermore, by leveraging existing infrastructure and diversifying national energy supply chains, clean fuels provide a practical pathway to strengthening energy security while meeting the 56% of global energy demand currently supplied by liquid and gaseous fuels.
Thought leadership:
Roberto Bocca, Head, Centre for Energy and Materials, World Economic Forum, emphasized the pragmatic nature of this transition. “Clean fuels represent an important pathway to advancing sustainability while continuing to supply the energy required by the global economic system. Our research shows the industry can deliver durable environmental benefits alongside economic value.”
Cate Hight, Partner, Bain & Company, said that the corporate mindset is shifting. “Over the last few years, the question among business leaders has evolved from should we invest to how and when. Those who succeed are rethinking project approaches, focusing on customers, flexibility, and mitigating investment risk.”
The road to 2030:
To bridge the investment gap, the WEF calls for performance-based policies, public-private risk-sharing mechanisms, and early demand commitments from first mover companies.
Currently, only 10% of announced new capacity for 2030 has reached a final investment decision. Success will require coordinated action across borders, such as the Belém 4x pledge signed by over 25 countries to quadruple clean fuel production by 2035.
