Global investment in clean fuels stands at about $25 billion a year, far below what is needed to meet climate targets
The World Economic Forum says spending must exceed $100 billion annually by 2030 to bridge the gap
Clean fuels are seen as critical for cutting emissions in hard-to-abate sectors such as shipping, aviation and heavy industry
Global investment in clean fuels will need to rise more than fourfold — from about $25 billion (£20 billion) a year today to over $100 billion annually by 2030 — if countries are to meet their climate and energy transition goals, according to a new report by the World Economic Forum (WEF).
The report, Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market, released on January 15, 2026, warns that without a rapid scale-up of finance, policy support and demand creation, clean fuels risk remaining marginal despite their growing strategic importance.
Clean fuels, including biofuels, biogas, hydrogen derivatives, synthetic fuels and lower-carbon fossil fuels, are increasingly seen as critical for cutting emissions in hard-to-abate sectors such as heavy industry, shipping and aviation.
Liquid and gaseous fuels currently account for 56 per cent of global energy consumption, meaning clean fuels could build on existing energy infrastructure rather than require entirely new systems.
“Clean fuels represent an important pathway to advancing sustainability while continuing to supply the energy required by the global economic system,” Roberto Bocca, Head of the Centre for Energy and Materials at the World Economic Forum, said in a statement. “Our research shows the industry can deliver durable environmental benefits alongside economic value.”
Despite rising political ambition, clean fuels currently account for just over 1 per cent of global clean energy investment, the report said. Momentum is beginning to build, however. At 30th Conference of Parties (COP30) to the United Nations Framework Convention on Climate Change, more than 25 countries signed up to the Belém 4x pledge, committing to quadruple clean fuel production and use by 2035.
The WEF report argued that clean fuel investment could deliver significant economic benefits, generating two to three times more jobs than conventional fuel sectors, while improving energy security by diversifying national energy supply chains. The WEF report argued that clean fuel investment could deliver significant economic benefits, generating two to three times more jobs than conventional fuel sectors, while improving energy security by diversifying national energy supply chains.
However, many projects continue to stall because of high upfront costs, uncertain demand, fragmented value chains and uneven policy frameworks across regions.
“Over the last few years, the question among business leaders has shifted from should we invest to how and when,” Cate Hight, Partner in Bain & Company’s Energy and Natural Resources practice, said in a statement. “Those creating value are focusing on customers, flexibility, partnerships and actively mitigating investment risk.”
To unlock capital at the scale required, the WEF called for performance-based policies, public–private risk-sharing mechanisms and early demand commitments to improve project bankability. The report stressed that coordinated action by governments, financiers and industry will be essential to create a pipeline of commercially viable projects capable of attracting long-term investment.
The report drew on technical and economic modelling, expert consultations and inputs from more than 30 organisations involved in the WEF’s Future of Clean Fuels initiative, and includes case studies from Latin America, Europe and Southeast Asia. A companion Digital Playbook has been launched to provide practical examples of how policy, finance and business models can accelerate deployment.
As governments look to balance climate action with economic growth and energy security, the report argues that clean fuels — if backed by credible policy and finance — could move from ambition to execution within this decade.