Calendar10 April 2026

Biofuels are renewable fuels derived from organic matter or waste, including liquid fuels such as ethanol, biodiesel, renewable diesel and sustainable aviation fuel (SAF), as well as gaseous fuels like biomethane. Alongside electrification, biofuels are a key lever to decarbonising transport – for some hard-to-abate sectors, liquid and gaseous biofuels may be a lower carbon alternative available at scale.  

This fact sheet explores key aspects of biofuels and explains the role of biofuels in the energy transition, outlining the main biofuel types, feedstocks and production pathways, as well as where and how biofuels are used across transport and other sectors. It also describes how biofuel sustainability is assessed, including the range of regulatory frameworks, certification schemes and stakeholder perspectives that shape market development.

It covers:

  • What are biofuels?
  • How are biofuels made?
  • What is sustainability for biofuels?
  • How much sustainable biomass is there?

Overall, biofuels can help reduce lifecycle greenhouse gas emissions, particularly in hard-to-electrify transport sectors. However, sustainability outcomes depend on feedstock choice, production methods and verification, and differing regulatory and societal views continue to create complexity and uncertainty for investment and scaleup. For biofuels to be considered sustainable, they need to be produced in a sustainable manner throughout their entire value chain, with environmental and social safeguards in place.

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