Towards Common Criteria for Sustainable Fuels

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.

Accelerated deployment of sustainable fuels depends in part on achieving a common understanding of what makes a fuel “sustainable”. Numerous frameworks and certification schemes for sustainable fuels have been established worldwide. Terms such as “green,” “blue,” or “advanced” are frequently used to describe the sustainability features of fuels and to differentiate them from their unabated fossil counterparts. However, there is no international consensus on the meaning of these terms. Their definitions are inconsistent and, critically, they do not usually provide quantitative information about greenhouse gas emissions.

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.