Global clean fuel investment must quadruple to $100 billion a year by 2030 to meet climate goals, WEF warns

The World Economic Forum's (WEF) recent warning regarding the necessity of quadrupling global clean fuel investment to $100 billion annually by 2030 underscores a critical juncture in humanity's fight against climate change. This call to action highlights a severe investment gap, as clean fuels currently attract a meagre 1% of the total global clean energy investment, pointing to a significant bottleneck in achieving ambitious climate goals.

The background context for this urgent appeal stems from the escalating climate crisis, characterized by rising global temperatures, extreme weather events, and their devastating socio-economic impacts. The scientific consensus, solidified by reports from the Intergovernmental Panel on Climate Change (IPCC), unequivocally points to human-induced greenhouse gas emissions as the primary driver. In response, the international community adopted the Paris Agreement in 2015, committing nations to limit global warming to well below 2 degrees Celsius above pre-industrial levels, preferably to 1.5 degrees Celsius. Achieving these targets necessitates a radical transformation of our energy systems, moving away from fossil fuels towards cleaner alternatives, prominently including clean fuels like green hydrogen and sustainable biofuels.

What precisely happened is that the WEF, a prominent international organization for public-private cooperation, analyzed current investment trends and future requirements. Their findings reveal that despite increasing political ambition and policy support for clean energy, the specific segment of clean fuels is severely underfunded. The $100 billion target by 2030 represents the scale of investment needed to accelerate the development, production, and deployment of these fuels, which are crucial for decarbonizing hard-to-abate sectors such as heavy industry, long-haul transport, and aviation, where direct electrification is challenging.

Key stakeholders involved in addressing this investment gap are diverse. The **World Economic Forum** itself plays a crucial role in convening leaders and fostering dialogue to mobilize action. **National Governments** are paramount, responsible for creating stable policy frameworks, offering incentives (subsidies, tax breaks), and implementing regulations to de-risk investments and attract capital. The **Private Sector**, including energy companies, financial institutions, and technology providers, is the primary source of the required capital, innovation, and project execution capabilities. **International Financial Institutions (IFIs)** such like the World Bank and regional development banks, along with multilateral climate funds, are vital for providing concessional finance, technical assistance, and bridging initial funding gaps, especially in developing nations. Lastly, **developing nations**, particularly those with large energy demands and significant renewable energy potential, are critical players, both as recipients of investment and as future producers and consumers of clean fuels.

This issue holds immense significance for India. As the world's third-largest emitter of greenhouse gases and a rapidly developing economy, India's energy choices have global ramifications. Meeting the WEF's investment target would significantly bolster India's efforts to achieve its Nationally Determined Contributions (NDCs) under the Paris Agreement, which include reducing the emissions intensity of its GDP by 45% by 2030 from 2005 levels and achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. Furthermore, India has committed to achieving Net Zero emissions by 2070. Increased investment in clean fuels, especially green hydrogen, aligns perfectly with initiatives like the **National Green Hydrogen Mission (launched in January 2023)**, which aims to make India a global hub for green hydrogen production and export, targeting 5 MMT (million metric tonnes) production by 2030. This transition promises enhanced energy security by reducing reliance on volatile fossil fuel imports, fosters economic growth through green job creation and new industrial development, and improves public health by reducing air pollution.

Historically, discussions around climate finance have often centred on the 'common but differentiated responsibilities' principle, recognizing that developed nations, having historically contributed more to emissions, bear a greater responsibility to provide financial and technological support to developing countries. The current WEF warning reiterates the need for this global cooperation. India’s constitutional framework supports environmental protection through **Article 48A** of the Directive Principles of State Policy, which mandates the State to