Beyond the GHG impacts of clean fuels, it is important to account for broader sustainability concerns, such as competition for land use, impact on water systems, and broader health and safety outcomes. Rigorous monitoring, reporting and verification (MRV) are needed to ensure that clean fuels deliver positive environmental and societal outcomes.50 Transparent, robust MRV and certification systems adaptable to different regional and project contexts are essential to verify emissions reductions, compare outcomes and guide investment. However, current MRV methodologies vary widely across jurisdictions, undermining interoperability and trust. Clean fuel demand is set to rise significantly over the next decade, but today’s mature technologies and feedstocks alone cannot meet this demand.51,52 Accelerating growth depends on stimulating demand and overcoming supply constraints in parallel, which will enable the expansion of multiple complementary technologies and feedstocks. Since most clean fuels are – and will remain – costlier than conventional fossil fuels, scaling-up the market will require stable, well- designed policies. Feedstock access is a key chokepoint to expanding supply. Competitive growth requires widening the sustainable resource base, advancing emerging conversion routes and promoting practices that lower lifecycle carbon intensity. The blending/ drop-in nature of many pathways enables rapid deployment without major new infrastructure in most situations, helping limit price impacts as markets mature. Commercial options such as biomethane, ethanol, biodiesel and renewable diesel can also enable the next wave of pathways. For example, as gasoline demand declines in the US, “ethanol overhang”53 can be redirected to alcohol-to-jet production – one of the most promising pathways to decarbonize aviation long-term. The optimal mix of clean fuels will vary by region, sector and time frame, reflecting resource availability, local policy priorities and total system cost compared to alternative energy supply options and abatement strategies. Progress requires a dual track approach: continue scaling-up commercial blend-in fuels, while boosting investments in innovation and first-of-a-kind projects and feedstocks that can accelerate competitively and sustainably.2.2 Implications for scaling-up the market in the next decade Since most clean fuels are – and will remain – costlier than conventional fossil fuels, scaling- up the market will require stable, well- designed policies. Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market 19

Fuelling the Future 2026