Dublin, June 20, 2025 (GLOBE NEWSWIRE) -- The "Carbon-Neutral Fuels - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering.
The global market for Carbon-Neutral Fuels was estimated at US$88.4 Billion in 2024 and is projected to reach US$126.5 Billion by 2030, growing at a CAGR of 6.2% from 2024 to 2030.
This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Carbon-Neutral Fuels market. 
Why Are Carbon-Neutral Fuels Emerging as a Critical Solution in the Global Energy Transition?
As the global community intensifies efforts to combat climate change, carbon-neutral fuels are gaining prominence as a vital pathway toward decarbonizing hard-to-abate sectors. These fuels produced using renewable energy sources and designed to release no net carbon emissions during their lifecycle are increasingly seen as a bridge between existing fossil fuel infrastructure and a fully electrified future. Unlike conventional fossil fuels, carbon-neutral fuels such as green hydrogen, synthetic e-fuels, and biofuels derived from waste biomass can provide a drop-in alternative with minimal modifications to engines, distribution systems, or fueling stations. This compatibility is crucial for sectors like aviation, shipping, and long-haul trucking, where direct electrification remains technically or economically challenging.
Governments and climate pacts like the Paris Agreement are applying pressure through carbon pricing, emissions targets, and clean fuel mandates, incentivizing rapid adoption and innovation in carbon-neutral technologies. With rising global energy demand and growing skepticism over the pace of electrification, carbon-neutral fuels offer a pragmatic, scalable alternative that aligns environmental goals with industrial reality. Furthermore, these fuels can be synthesized using carbon captured from the atmosphere or industrial processes, enabling a closed-loop carbon cycle that supports global net-zero ambitions. As the urgency to act on emissions intensifies, carbon-neutral fuels are moving from concept to commercial deployment, becoming a linchpin in the strategy to decouple energy consumption from carbon output.
What Policy Measures and Market Trends Are Accelerating Adoption?
The policy landscape is evolving rapidly to support the growth of carbon-neutral fuels, with governments, international agencies, and private-sector coalitions all playing pivotal roles. In Europe, the Renewable Energy Directive II and Fit for 55 package mandate a rising share of renewable and low-carbon fuels in transportation, including aviation and maritime sectors. The U.S. Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law offer tax credits and funding for clean hydrogen and sustainable aviation fuel (SAF) projects, while Canada, Japan, and South Korea have unveiled national hydrogen strategies with strong incentives for carbon-neutral fuel development. Carbon pricing mechanisms such as the EU Emissions Trading System are making fossil fuels more expensive to use, indirectly boosting demand for cleaner alternatives.
Meanwhile, corporate commitments to net-zero targets are prompting major logistics, airline, and energy firms to invest in long-term supply agreements for carbon-neutral fuels. International aviation bodies like ICAO are setting SAF adoption targets, while maritime regulators push for low-carbon fuel usage across shipping lanes. Financial markets are also playing a role, with green bonds and climate-aligned investment funds directing capital toward fuel innovation projects.
On the consumer side, increased awareness of carbon footprints is driving demand for sustainable travel and low-emission delivery options, indirectly influencing fuel sourcing. These policy and market shifts are creating a favorable ecosystem for carbon-neutral fuels to scale moving the conversation from niche pilot projects to global industrial deployment, and establishing the regulatory certainty needed for long-term infrastructure investments.
What's Powering the Growth of the Global Carbon-Neutral Fuels Market?
The growth in the carbon-neutral fuels market is driven by several intertwined factors spanning environmental targets, industrial demand, technological viability, and strategic policy support. At the core is the global push toward net-zero emissions, with more than 140 countries and thousands of corporations committing to carbon neutrality by mid-century. This sweeping commitment is translating into direct demand for low-emission alternatives in sectors that cannot easily electrify aviation, marine shipping, heavy manufacturing, and long-haul freight. On the technology side, the rapid maturation of green hydrogen electrolysis, CO2-to-fuel conversion, and biomass gasification is enabling large-scale, commercially viable production pathways.
From an end-use perspective, industries are eager to decarbonize without overhauling existing infrastructure, making drop-in carbon-neutral fuels an attractive proposition. Consumer and corporate behavior is evolving, with rising scrutiny of Scope 3 emissions, greater interest in sustainable sourcing, and ESG frameworks pushing companies to adopt low-carbon fuel solutions. Policy support is equally vital, with tax incentives, fuel blending mandates, infrastructure funding, and clean energy subsidies helping bridge the economic gap between conventional and carbon-neutral fuels.
Additionally, geopolitical concerns over energy security and fuel independence are prompting many nations to invest in local, renewables-based fuel production, reducing reliance on imported fossil fuels. International cooperation through climate accords and technology-sharing partnerships is further accelerating knowledge transfer and deployment. Together, these drivers are not only propelling the carbon-neutral fuels market forward but are also positioning it as a foundational pillar of the emerging global green energy economy.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Carbon Dioxide Feedstock segment, which is expected to reach US$33.9 Billion by 2030 with a CAGR of a 4.5%. The Hydrogen Feedstock segment is also set to grow at 7.8% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $24.1 Billion in 2024, and China, forecasted to grow at an impressive 9.4% CAGR to reach $25.4 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis.
Key updates include:
- Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
- Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
- Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
- Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
- Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
- Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 400 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $88.4 Billion |
| Forecasted Market Value (USD) by 2030 | $126.5 Billion |
| Compound Annual Growth Rate | 6.2% |
| Regions Covered | Global |
Key Topics Covered:
MARKET OVERVIEW
- World Market Trajectories
- Tariff Impact on Global Supply Chain Patterns
- Carbon-Neutral Fuels - Global Key Competitors Percentage Market Share in 2025 (E)
- Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
MARKET TRENDS & DRIVERS
- Global Decarbonization Targets Throw the Spotlight on Carbon-Neutral Fuels as Next-Gen Energy Alternatives
- Stricter Emission Regulations Accelerate Demand for Low-Carbon and Renewable Fuel Substitutes
- Expansion of Net-Zero Commitments by Corporates and Governments Strengthens the Business Case for Carbon-Neutral Fuel Adoption
- Growing Investment in Green Hydrogen and E-Fuels Expands the Addressable Market for Synthetic Carbon-Neutral Fuels
- Electrification Gaps in Aviation and Shipping Propel Growth in Drop-In, Carbon-Neutral Liquid Fuels
- Carbon Pricing and Emission Trading Schemes Generate Economic Incentives for Transition to Cleaner Fuel Alternatives
- Integration with Carbon Capture and Utilization Technologies Spurs Innovation in Closed-Loop Fuel Cycles
- Renewable Power Surplus Utilization Drives Adoption of Power-to-Liquid and Power-to-Gas Fuel Pathways
- Bio-Based Feedstocks and Advanced Algal Sources Open New Vistas for Sustainable Carbon-Neutral Fuel Production
- Lifecycle Emission Accounting and Scope 3 Reduction Pressures Boost Market Demand from ESG-Conscious Buyers
- Global Supply Chain Decarbonization Efforts Strengthen Market Viability of Low-Carbon Freight and Logistics Fuels
FOCUS ON SELECT PLAYERS
Some of the 34 companies featured in this Carbon-Neutral Fuels market report include:
- ADM (Archer Daniels Midland)
- BP plc
- Chevron Corporation
- Cosan S.A.
- Dioxide Materials
- Enerkem Inc.
- Eni S.p.A.
- ExxonMobil Corporation
- FuelCell Energy, Inc.
- HIF Global
- Indian Oil Corporation Limited
- LanzaTech
- Neste Corporation
- PetroChina Company Limited
- Phillips 66
- Repsol S.A.
- Saudi Aramco
- Shell plc
- Sinopec Group
- TotalEnergies SE
For more information about this report visit https://www.researchandmarkets.com/r/j96yia
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