IEA World Energy Investment 2025 Report

investment in selected low-emissions fuels in selected regions, 2023, 2024 and 2025

Figure: Investment in selected low-emissions fuels in selected regions, 2023, 2024 and 2025

Source: World Energy Investment 2025 report, 10th Edition

Investment in liquid biofuels, biogases and hydrogen is set to rise by 30 % in 2025, to nearly $25 billion, building on a 20 % rise in 2024.

📌 Low-emissions fuel spending varies greatly by region:

  • in 2024, Europe accounted for 60% of global investment in biogases;
  • the US made up 70% of global investment in biojet kerosene;
  • China has large investments in hydrogen;
  • Brazil focuses on liquid biofuels.

📌 Investment in liquid biofuels, biogases and low-emissions hydrogen is set to rise by 30% in 2025 to a record high close to USD 25 billion, building on a 20% rise in 2024.

📌 Policies and regulations remain essential to this growth: mandates, quotas and other forms of policy support have underpinned the high levels of investment in biodiesel and ethanol in the United States and Brazil and in biogases in Europe.

📌 Some hydrogen projects have been cancelled or delayed in the past 12 months, but there remains a pipeline of projects that have received FID, requiring around USD 8 billion of investment in 2025, a 70% increase from the level in 2024.

📌 For hydrogen:

  • there were a number of setbacks for projects around the world, nonetheless, investment rose by 60% in 2024, and there remains a large pipeline of hydrogen production projects that have received FID.
  • government support has continued in 2025 globally, for example, in Australia and the EU.
  • all hydrogen projects that have received FID would require investment almost USD 8 billion and would increase capacity to around 7.5 Mt in 2035.

➡️ Source: World Energy Investment 2025 report, 10th Edition

Regulatory work in PtX projects

regulatory frameworks across countries

Source: Sustainability regulations for PtX projects

Why does regulatory work matter in PtX projects?

Because the success of PtX projects doesn’t just depend on technology — it also depends on navigating a complex and often fragmented regulatory landscape.

The table above highlights how diverse and misaligned regulatory frameworks are across countries.

This complexity becomes even more critical for import-oriented PtX projects, where compliance is needed with both the exporting and importing country’s rules.

✅ Key challenges:

📌 Diverging national regulations

📌 Different GHG emission thresholds

📌 Contradictions between high renewable potential and low renewables deployment in some exporting countries.

These factors can hinder project bankability, delay timelines, or even block market access.

That’s why aligning regulatory frameworks — or at least understanding and navigating their discrepancies — is crucial for enabling global hydrogen and e-fuel markets.

➡️ Source:

Stefan Bube, Katja Lange, Dayana Granford Ruiz, Sebastian Schindler, Marie Plaisir, Martin Kaltschmitt, Jochen Bard, Klemens Ilse.
Sustainability regulations for PtX projects: Scope and impact analysis,
Joule,
2025,
101966,
ISSN 2542-4351,
https://doi.org/10.1016/j.joule.2025.101966.

EU Startup and Scaleup Strategy

EU Startup and Scaleup Strategy

On 28 May 2025, the European Commission has launched the EU Startup and Scaleup Strategy, to make Europe a great place to start and grow global technology-driven companies.

✅ The EU Startup and Scaleup Strategy aims to make Europe the best place in the world to launch and grow global technology-driven companies, including deep tech companies. This is crucial for strategic technologies, such as for example cleantech and energy (including nuclear technology).

☑️ The key needs of startups and scaleups:

📌 Fostering innovation-friendly environment:

  • Startups and scaleups need less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market.
  • a European 28th regime will be proposed to simplify rules and reduce the cost of failure by addressing critical aspects in areas like insolvency, labour and tax law.
  • The European Business Wallet will enable seamless digital interactions with public administrations across the EU through a unified digital identity for all economic operators.
  • The forthcoming European Innovation Act will further support innovation by promoting regulatory sandboxes.

📌 Driving better financing:

  • The Savings and Investments Union initiative will be key to unlocking more financing and investment opportunities in the EU.
  • The Strategy aims to expand and simplify the European Innovation Council, deploy a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies, and develop a voluntary European Innovation Investment Pact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted scaleups.

📌 Supporting market uptake and expansion:

  • The Strategy introduces a Lab to Unicorn initiative, which includes the European Startup and Scaleup Hubs.

📌 Attracting and retaining top talent:

  • The Strategy introduces the Blue Carpet initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment.
  • The Blue Card Directive will be promoted to put in place a fast-track schemes for non-EU founders.

📌 Facilitating access to infrastructure, networks and service:

  • The Strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructures through a Charter of Access for industrial users.

➡️ Source: Commission launches ambitious Strategy to make Europe a startup and scaleup powerhouse

New pieces of secondary legislation related to the Net-Zero Industry Act

Net-Zero Industry Act

On 23 May 2025, the European Commission adopted new pieces of secondary legislation and a communication relating to the Net-Zero Industry Act (NZIA).

📃 Adopted Acts:

✅ Communication providing updated information to determine the shares of the EU supply of final products and their main specific components originating in different third countries under NZIA

  • provides information on where the EU’s supply of net-zero technologies comes from, highlighting third country dependencies for specific technologies. This information enables the application of the ‘resilience’ non-price criterion in public procurement, renewable energy auctions, and other public interventions.
  • helps Member States in evaluating net-zero technology manufacturing projects eligible for strategic project status.

✅ Implementing Regulation specifying the pre-qualification and award criteria for auctions for the deployment of energy from renewable sources

  • These criteria include responsible business conduct, cybersecurity, and sustainability and resilience contribution.
  • Starting on 30 December 2025, the new rules must be applied to 30% of auction volumes (or 6 GW per year per EU country).

✅ Delegated Regulation regarding the identification of sub-categories within net-zero technologies and the list of specific components used for those technologies

  • replaces Annex with list of final products and specific components in NZIA.

✅ Implementing Regulation regarding the list of net-zero technology final products and their main specific components for the purposes of assessing the contribution to resilience

  • includes Annex with list of net-zero technology final products and their main specific components for the purposes of assessing the contribution to resilience.

✅ Implementing Decision adopting guidelines for the implementation of certain selection criteria for net-zero strategic projects

  • ensures a consistent selection process across Member States, through guidance on the applicable criteria for that strategic project selection.

☑️ What next?

📌 For the Delegated Regulation, following publication, the European Parliament and the Council have a 2-month scrutiny period (extendable by a further 2 months if requested), during which they can object to this act.

📌 However, there is no scrutiny period for the Implementing Regulations adopted on 23 May 2025.

➡️ Source: Net-Zero Industry Act secondary legislation

Opinion on the statutory documents of the ENNOH

Opinion (C/2025/2004) on the statutory documents of the European Network of Network Operators for Hydrogen (ENNOH)

On 16 May 2025, the European Commission published its Opinion (C/2025/2004) on the statutory documents of the European Network of Network Operators for Hydrogen (ENNOH) – the independent association representing future hydrogen transmission network operators at EU level.

✅ Key Takeaways:

📌 Climate Objectives: the Articles of Association (AoA) of the ENNOH should be modified as to include climate related objectives.

📌 Membership Criteria: Only certified Hydrogen Transmission Network Operators (HTNOs) — or those undergoing certification — can be members. The “founding member” concept must align with EU law.

📌 Observer Access: Observer status should be restricted to HTNOs from countries applying EU energy law (e.g., EEA or Energy Community members).

📌 Board Composition: Rules must ensure regional balance while rewarding early movers — but with transparent limitations and future revisions.

📌 Stakeholder Engagement: Public consultations must be transparent, inclusive, and allow a default period of 2 months.

📌 Amendments & Dissolution: Changes to ENNOH’s statutory documents — including its list of members — and any dissolution must receive explicit Commission approval.

📌 Gender & Diversity: ENNOH is encouraged to integrate gender parity and diversity into board and senior role appointments.

☑️ WHAT NEXT?

The future hydrogen transmission network operators shall adopt and publish, by early July 2025, the final statutory documents, taking into account the Commission’s and ACER’s opinions.

➡️ Source: Important step towards establishing the European Network of Network Operators for Hydrogen

Enforcement of the ReFuelEU Aviation Regulation by EU Member States

Member States enforcing the ReFuelEU Aviation Regulation

How are EU Member States enforcing the ReFuelEU Aviation Regulation?

The European Commission has published an overview of the enforcement status of the ReFuelEU Aviation Regulation across EU Member States.

ℹ️ This overview was compiled based on data provided by Member States and is published for information purposes.

📅 Last updated: 5 May 2025.

➡️ Source: Overview_of_Member_States_enforcement_of_RFEUA

Public Consultations. Delegated Act about reporting of CORSIA-eligible fuels

Delegated Act about reporting of CORSIA-eligible fuels

✈️ The European Commission conducts the Public Consultation regarding the draft of the Delegated Act about reporting of CORSIA-eligible fuels and CORSIA emissions unit cancellation reports.

📅 Feedback Period – 01 April 2025 – 29 April 2025

✅ What is the CORSIA?

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA):

  • has been in operation since 2019 for monitoring, reporting and verification of carbon dioxide emissions.
  • is intended to be a globally applied market-based measure, which aims to offset international aviation carbon dioxide emissions from January 2021.

✅ Key Points:

📌 This Delegated Act aims to update the current rules to facilitate:

  • reporting of fuels eligible under the CORSIA; and
  • submission and verification of CORSIA emissions unit cancellation reports.

📌 ‘CORSIA eligible fuel’ means an aviation fuel certified as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) eligible fuel by sustainability certification schemes listed in Annex I;

📌 Annex I: CORSIA approved sustainability certification schemes:

  • International Sustainability and Carbon Certification (ISCC)
  • Roundtable on Sustainable Biomaterials (RSB)
  • ClassNK SCS

📌 It should be possible to certify a batch of alternative aviation fuel under several schemes if it fulfils the criteria for each of those schemes. In order to prevent double claiming, aircraft operators should submit a declaration listing all GHG schemes they participate in, confirming that no amount of the alternative aviation fuel is reported more than once.

📌 This Delegated Act should apply to the emissions and use of CORSIA eligible fuels that have occurred since 1 January 2024.

➡️ Source: EU Emissions Trading System (ETS) – reporting of CORSIA-eligible fuels and CORSIA emissions unit cancellation reports

Public Consultations. EU ETS for maritime, aviation and stationary installations

EU ETS for maritime, aviation and stationary installations

The European Commission has commenced the public consultation regarding EU ETS for maritime, aviation and stationary installations, and market stability reserve.

📄 Type of Act – Proposal for a Directive

📅 Feedback period – 14 April 2025 – 08 July 2025

✅ The following aspects are subject to review:

📌 Aviation emissions:

  • the EU has temporarily limited the scope to intra-EEA flights that encourages the development of an effective global carbon pricing scheme by the ICAO.
  • by mid-2026, the Commission should make a report on CORSIA.
  • the ETS Directive suggests assessment criteria and indications on geographical scope.

📌 Maritime emissions:

  • the European Commission will have to assess the GHG pricing mechanism and market-based measures that will possibly be adopted at the IMO in 2025 and review the ETS accordingly to avoid a significant double burden on maritime operators;
  • the European Commission will have to consider extending the EU ETS to cover emissions from smaller ships (i.e. ships below 5 000 gross tonnage but not below 400 gross tonnage);
  • the European Commission should monitor implementation of the recent extension of the EU ETS to maritime transport, and consider legislative improvements to ensure the effective implementation of the extension;
  • the European Commission should simplify and improve the system where possible.

📌 Municipal waste incineration:

  • This looks at the feasibility of including such installations in the EU ETS from 2028.

📌 Non-permanent carbon capture and use:

  • the impact assessment will look at whether all GHG emissions covered by the EU ETS are effectively accounted for and whether double counting is being avoided, in particular regarding GHG emissions considered to have been captured and utilised in a product non-permanently.

📌 Carbon removals:

  • the possible inclusion of domestic permanent carbon removals in the EU ETS.
  • how the EU ETS could account for negative emissions resulting from GHGs that are removed from the atmosphere and safely and permanently stored underground or permanently stored in products;
  • how those negative emissions, if appropriate, could be covered by ‘emissions trading’ or other policies, setting a clear scope and strict criteria;
  • putting in place of safeguards to ensure that such removals do not offset necessary emissions reductions.

☑️ WHAT NEXT?

📌 At the end of this consultation process, a factual summary report and a synopsis report will be drafted.

📌 The Commission Adoption – Q3 2026.

➡️ Source: EU emissions trading system for maritime, aviation and stationary installations, and market stability reserve – review