The global clean fuels market requires $100 billion in annual investment by 2030, yet less than $25 billion is currently being deployed, putting both energy security and climate targets at risk. Without rapid capital mobilization, hydrogen, biofuels and other low-carbon fuels will not scale quickly enough to meet rising demand. The gap is especially stark in Africa, where more than 600 million people lack access to electricity, but clean fuels investment totaled less than $1 billion in 2024, underscoring the urgent need for increased capital deployment. A new World Economic Forum (WEF) report, Fuelling the Future: How Business, Finance and Policy Can Accelerate the Clean Fuels Market, identifies three priority financing pathways to close this investment shortfall.
Government Incentives
The first pathway centers on government incentives. The whitepaper calls for performance-based policy frameworks that reward producers and consumers for achieving emissions-reduction milestones, strengthening market competitiveness while stimulating demand. With only 10% of announced clean fuel capacity for 2030 having reached final investment decision, targeted incentives could unlock stalled projects and accelerate capital flows. This is particularly critical as liquid and gaseous fuels are expected to account for 40–55% of global energy demand by 2050, reinforcing the need to scale cleaner fuels at speed.
Public-Private Partnerships
A second pathway focuses on public–private partnerships. Expanded public–private financing structures can help de-risk early-stage clean fuels projects by improving access to capital and strengthening links between producers and end users. According to the WEF, every $1 million invested in clean fuels can create 10 – 30 jobs, meaning that de-risking projects and unlocking investment flows could also support employment creation, particularly in emerging markets.
Value chain Coordination
The third pathway emphasizes value-chain coordination. Stronger collaboration across the clean fuels value chain can help close infrastructure gaps, reduce operating costs and accelerate large-scale deployment. According to the WEF, coordinated action allows governments to provide clear, enabling policy frameworks while the private sector mobilizes capital and technology, creating the conditions needed to fast-track project development and the rollout of innovative clean fuel solutions.
