Abstract:

Sustainable fuels play a crucial role in clean energy transitions. They complement direct electrification and energy efficiency measures in decarbonising sectors for which emissions are hard to abate, while contributing to energy diversification and security. Under the IEA’s Net Zero Emissions by 2050 (NZE) Scenario, the demand for low-emission fuels such as liquid biofuels, biogases, hydrogen and hydrogen-based fuels would need to double from current levels by 2030 and double again by 2050. Despite their importance, none of the main sustainable fuel options are on track for a net zero pathway.

This report – produced in support of Brazil’s G20 Presidency – explores the feasibility and implications of setting up common criteria to enable fair comparisons of sustainable fuels. It maps commonalities and differences among the standards, regulations and certifications used for sustainable fuels across different regions and markets. It reviews typical carbon intensities and the improvement potential of various fuel production pathways and sets out policy considerations for governments that wish to work toward common criteria for sustainable fuels.