Bioenergy

By 2030, renewable fuels are set to account for 5.5% of energy consumption from the industry, building and transport sectors. Demand is due to expand in all regions, but it is concentrated in China, Brazil, Europe, India and the United States, which collectively support more than two-thirds of the forecasted growth. All five countries and regions have dedicated support policies for several – and, in some cases, all – renewable fuels. These vary by fuel, sector and country, but they often include a combination of mandates, greenhouse gas performance criteria, and incentives to invest in direct production and related assets.

Bioenergy – including liquid, gaseous and solid fuels – accounts for the vast majority (95%) of renewable fuel growth to 2030. New demand for bioenergy is set to expand the most in the industrial sector, followed by transport and buildings, though the type of bioenergy differs by sector. Modern bioenergy is less expensive than hydrogen and e-fuels, and strong policy support is already in place in many countries and regions. For instance, more than 60 countries have liquid biofuel policies, whereas only the European Union and the United Kingdom have e-fuel requirements.