Fuel pathways and applications in focus for this report BOX 1 This report examines supply pathways for liquid and gaseous fuels with potential to be produced and used in ways that materially reduce lifecycle greenhouse gas (GHG) emissions, measured in CO2-equivalent per megajoule on a full lifecycle basis. Most of the pathways considered have the potential to cut emissions by at least half compared with conventional fossil fuels, without introducing adverse non-GHG impacts, although not all projects will be able to deliver these intensity reductions in the near-term. The analysis also explores the role of certain lower-carbon fossil fuels in enabling near-term emissions reductions at lower abatement cost when combined with processes such as carbon capture and storage and methane leakage minimization, while recognizing that the emissions reduction potential of such pathways is limited and unable to deliver “last mile” emissions reduction. Clean fuels will, in most cases, remain more expensive to produce than fossil fuels over the short to medium term and are unlikely to reach cost parity on a pre-subsidy cost-per-energy- unit basis. However, when their wider societal value is incorporated, including energy security, economic and environmental benefits, they can become competitive on a system level. Clean fuels can strengthen security of supply, reduce energy import costs, support equitable economic growth and jobs, and improve sustainability, contributing towards a more affordable, resilient and lower- emission energy system (see Figure 3). Different regions will put different weight on each of these objectives, responding to adoption speed of new technologies, changing geopolitical dynamics and economic competitiveness, which will impact the role of clean fuels over time.1.2 Unlocking societal value – global opportunities and regional realities Clean fuels offer multiple sources of societal value FIGURE 3 Notes: 1. Realized potential in selected net fossil fuel-importing countries. 2. Based on mid-range energy transition scenarios. For full methodology on GHG emission reduction potential, see Appendix. Sources: World Economic Forum, Bain & Company analysis.81.0-2.5 billion tCO2e emissions r eduction potential by 2050 fr om adopting clean fuels25-15% reduction in fossil fuel import dependence by adopting clean fuels1 2-3x job cr eation capacity of clean fuels vs. conventional fuels Equitable SustainableSecur e Energy transition Competitive economiesGeopoliticsAdoption speed Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market 9

Fuelling the Future 2026